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I am not an investment professional. I do not engage in stock or currency trading. I am a blogger and investor who believes the failure of credit has created an investment demand for gold, and that gold bullion is the sole means of wealth preservation.
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  • Fed Chairman Yellen Speaks ... The Death Of Fiat Money Commences ... Turning All Fiat Investments Lower In Value

    On Monday, July 14, 2014, Marketwatch reports Gold Plunges 2.3% In Biggest Daily Drop of 2014 As Investors Book Profit. "Overall, we believe that physical demand has remained short of expectations, the latest price increase having been driven largely by speculation," wrote Eugen Weinberg, commodity strategist at Commerzbank in Frankfurt, in a note. Pointing to India, Weinberg said the country's decision to maintain a 10% import duty on gold and silver "is also likely to have a dampening effect on future gold demand expectations. In conjunction with a rather below-average monsoon season, this points to below-average gold demand from India." Gold prices ended last week on a down note, but still managed to register their sixth straight weekly gain. Gold had probed four-month lows near $1,244.30 an ounce in early June, rallying to more than $1,337 last week.

    On Tuesday, July 15, 2014, Fed Chairman Jane Jellen spoke in Semiannual Monetary Policy Report To Congress, and stocks, commodities, bonds, and currencies all traded lower, evidencing the failure of fiat money.

    Nation Investment, EFA, traded slightly lower, and was led lower by Philippines, EPHE, Argentina, ARGT, Europe, EZU, FEU, DFE, Sweden, EWD, US Small Caps, IWM, IWC, Peru, EPU, Colombia, GXG, Canada, EWC, CNDA, and Russia, RSX, ERUS.

    World Stocks, ACWI, traded slightly lower, and were led lower by the High Beta Sectors, in particular,

    Social Media, SOCL, Biotechnology, IBB, Pharmaceuticals, PJP, Small Cap Pure Growth, RZG, Nasdaq Internet, PNQI, Internet Retail, FDN, Biotechnology, TAN, Medical Devices, IHI, IPOs, FPX, and Design Build, FLM. Of note, Building Materials, such as AAON, GFF, HW, APOG, BECN, AOS, and MAS, traded lower.

    Global Financials, IXG, traded unchanged, but Argentina Banks, BMA, GGAL, BFR, BBVA, Spain's Bank, SAN, and the National Bank of Greece, NBG, traded lower, and led European Financials, EUFN, lower, as Zero Hedge reports Espirito Santo Holding Company Preparing To File Bankruptcy.

    Yield Bearing Investments, DTN, trading lower included Shipping, SEA, Water Resources, FIW, International Dividend Dogs, IDOG.

    Commodities, DBC, was led lower by a lower price of Oil, USO, BNO, and Natural Gas, UNG, which stimulates Natural Resources, IGE, to trade lower; which were led lower by Copper Miners, COPX, Metal Manufacturers, XME, Energy Production, XOP, and Energy Service, OIH.

    Gold Miners, GDX, GDXJ, traded lower on a lower price of Gold, GLD. And Silver Miners, SIL, SILJ, traded lower on a lower price of Silver, SIL. The six week rally in the HUI Precious Metal Miners, $HUI, is over, as the chart of the Gold Miners relative to Gold, GDX:GLD, shows a dark cloud candlestick at the top of an ascending wedge.

    Debt deflation is underway as Credit Investments, AGG, traded lower, as the Interest Rate on the US Ten Year Notes, ^TNX, traded higher from its Friday July 11, 2014, value of 2.52% to 2.55%; thus evidencing that the bond vigilantes are in control of Interest Rates worldwide. Distressed Investments, such as those traded in Fidelity's FAGIX Mutual Fund, which underwrote QE1, as well as Junk Bonds, JNK, traded lower. Allmost all of the most Popular Notes and Bonds, such as TLT, EDV, BWX, FLOT, SHY, LQD, PICB, MBB, traded lower in value from their market top highs.

    Major World Currencies, DBV, were led lower by the Canadian Dollar, FXC; and Emerging Market Currencies, CEW, were led lower by the Brazilian Real, BZF; with the result that the US Dollar, $USD, UUP, traded higher. Based on the success of the bond vigilantes in sustaining the Benchmark Interest Rate, $TNX, above 2.49%, the currency traders have commenced global competitive currency devaluation.

    On July 2, 2014, the failure of credit commenced as Aggregate Credit, AGG, traded lower in value.

    On Monday, July 7, 2014, the destruction of fiat wealth commenced, as risk-on investing turned to risk-off investing, with World Stocks, ACWI, Nation Investment, EFA, Global Financials, IXG, and Yield Bearing Investments, DTN, all trading lower from rally highs, as investors fear that the monetary policies of the world central banks no longer stimulate investment gains nor global economic growth.

    Zero Hedge posts Wall Street "Throws In The Towel" On Q3/Q4 Revenue Growth Expectations, Charts Reveal.

    On Tuesday, July 15, 2014, the death of currencies commenced as is seen in the Commodity Currencies, CCX, such as the Canadian Dollar, FXC, the Euro, FXA, and the Australian Dollar, FXA, trading lower, on fear that the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and have made money good investments bad; these include Eurozone Nation Investment, such as Spain, EWP, Italy, EWI, Finland, EFNL, Netherlands, EWN, France, EWQ, Ireland, EIRL, Austria, EWO, Portugal, PGAL, and Greece, GREK, as well as Sweden, EWD, Norway, NORW, Denmark, EDEN, Switzerland, EWL, Canada, EWC, CNDA, and the US Small Caps, IWM, IWC; these are all failed nation state investments.

    The Eurozone Nations are failed sovereigns and cannot provide fiscal investment, economic seigniorage; and exist solely through the credit liquidity of the ECB.

    Gary of Between the Hedges posts Los Echos reports ECB's Praet Says Investment in France Is Acute Problem. The ECB's chief economist comments in an interview with daily newspaper Les Echos that the pace of recovery in France is disappointing.

    One should not be invested in Equity Investments, Nation Investments, Banking Investments, Yield Bearing Investment, or Credit Investments, as the death of Sovereign Currencies, commenced on Tuesday July 15, 2014, after Janet Yellen spoke in Semiannual Monetary Policy Report To Congress.

    Fiat Money, defined as the combination of Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, died on Tuesday July 15, 2014, as investors fear that the monetary policies have crossed the rubicon of sound monetary policies and have made money good investments bad.

    It may be that Gold will be trading lower in value, as it does, one should be dollar cost averaging into the physical possession of gold bullion, as it is the only safe asset and will eventually be trading higher as all fiat assets trade lower in value. Gold is in the middle of an Elliott Wave 3 Up, these are the most dynamic and sweeping of all economic waves, as they move higher to their Elliott Wave 5 High.

    Please consider that given that Fiat Wealth, That Is The Coinage Of The Banker Regime, Is Trading Lower In Value, The World Has Pivoted Into Kondratieff Winter.

    With the failure of credit on July 1, 2014, seen in Aggregate Credit, AGG, trading lower in value as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.49%, the world is moving through a historic economic inflection point.

    The world is pivoting through peak wealth. Fiat Wealth, defined as World Stocks, VT, Global Financial Institutions, IXG, Nation Investment, EFA, and Yield Bearing Investments, DTN, together with Aggregate Credit, AGG, is is literally being sawn asunder by the failure of trust in the world central banks' monetary authority to continue to provide investment gain, and global economic growth, as is seen in the Bloomberg report European Stocks Drop With Treasuries as Commodities Fall, and as is seen in the Zero Hedge report Peak Abenomics.

    The recovery from the Great Recession of 2008-09 has been the weakest ever, the reason being that the nature of money changed with the provision of the Greenspan Put, which became the Ben Bernanke QE1.

    From 2008 onward, the Fed's policy no longer came from the Humphrey Hawkins dual mandate of employment and growth, and thus have not provided economic recovery. The Global ZIRP monetary policies of the world central banks were designed to change the primary function of money to serve as the basis of fiat wealth investment; and thus birthed the investor, and investment gain, as the centerpiece of economic activity, with the result being the creation of awesome fiat wealth inflation, rather than much of any employment gains.

    The June 5, 2014 Mario Draghi ECB Mandates for NIRP and Targeted LTRO, together with the June 21, 2014, Mario Draghi ECB Press Announcement Calling For Shared Sovereignty, addresses secular stagnation, defined as low growth, low employment, and low inflation; and introduce the new global empire, that being the Ten Toed Kingdom, with a miry mixture of iron and clay, forming toes of diktat in regional governance, and clay in totalitarian collectivism.

    The First Toe will emerge out of Club Med, that is Portugal, Italy, Greece and Spain, sovereign, banking, and corporate insolvency, as a Revived Roman Empire, having a New Charlemagne, Jean Claude Juncker, and a New Monetary High Priest, Mario Draghi, which in soon coming regional economic governance, will serve as a template for like governance, in all of the world's ten regions, establishing totalitarian collectivism unifying all of mankind's seven institutions.

    Thus a new monster, the Beast Regime, will replace today's monster, the Creature from Jekyll Island.

    These Mandates and the Call serve as the EU Economic Manifest, that is the Charter and Club, for Eurozone regional governance, and have birthed the debt serf and debt servitude, as the centerpiece of economic activity, and will become ever more apparent and defined, as the call for shared regional sovereignty becomes ever more trumpeted, as economic deflation worsens when investors increasingly derisk out of debt trade investments and deleverage out of currency carry trade investments.

    The failure of credit, which occurred on July 2, 1014, and the death of currencies, which occurred on July 15, 2014, are dual extinction events, which will rapidly make the investor extinct.

    The Bond Vigilantes, being in firm control of The Bow of Economic Sovereignty, that is the Benchmark Interest Rate, will be calling Interest Rates higher worldwide, introducing political coup d etats; out of which the new money, diktat money, defined as the mandates of regional leaders for regional security, stability, and sustainability, will underwrite regional fascism replacing today's crony capitalism, socialism, and communism.

    The Fed will not be rolling over maturing Treasuries and MBS; they will be held to term, with the result the bond vigilantes will be having a hay day causing an ever accelerating destruction of the Fed's Balance Sheet, rapidly destroying the US Dollar Hegemonic Empire. In its place eventually ten kings will come to rule in each of the world's ten regions which will feature un-dollar, that is dollar-less, or better said un-dollar, regional bartering exchanges featuring new currencies such as the Petro Yuan.

    Now that Global ZIRP is history, that underwrote property investments of all types, look for Real Estate, IYR, and especially Global Real Estate, DRW, to rapidly fall lower in value.

    Inasmuch as destructionism is replacing inflationism, the economic future is one of global economic deflation, and rising headline price inflation.

     

    Jul 15 9:10 PM | Link | Comment!
  • Fiat Wealth, That Is The Coinage Of The Banker Regime, Traded Lower In Value, Pivoting The World Into Kondratieff Winter

    Introduction: The failure of Banque Privee Espirito Santo SA in Portugal marked an inflection point in economic history, as fiat wealth, that is the coinage of the Banker Regime, traded lower the week ending July 11, 2014, and pivoted the world into Kondratieff Winter, the final phase of the Business Cycle.

    I) ... Debasement of fiat wealth, that is the coinage of the Banker Regime, commenced on Monday, July 7, 2014, on fears that Greece, GREK, is an insolvent sovereign, and its bank the National Bank of Greece, NBG, is an insolvent bank.

    Widespread debasement of the coinage of fiat money, specifically debt deflation in Sovereign Currencies, will occur soon, the reason it has happened yet is the strong demand for currencies in Asia, as is seen in the WSJ report Currency Reserves Swell in Asia.

    Eventually it will be as in Venezuela, where William Neuman of the NYT posts Profits Vanish in Venezuela After Currency Devaluation.

    On Thursday, July 10, 2014, a Portugal, PGAL, banking crisis sparked a global stock selloff, further debasing the coinage of the Banker Regime's fiat wealth.

    On Friday, July 11, 2014, the Banker Regime's coinage of fiat wealth experienced debasement, as Energy Production, XOP, and International Energy, IPW, traded lower, as investors no longer trust the monetary policies of the world central banks to stimulate investment gains, spur the development of Global Natural resources, IGE, provide for Global Growth, DNL, procure Nation Investment, EFA, and maintain Emerging Market Nation Investment, EEM.

    Financial Intermediaries, such as GNW, MS, PNC, WFC, PUK, BK, and Asset Managers, such as BLK, EV, no longer serve as economic governors.

    It is out of waves of Club Med, that is Portugal, PGAL, Italy, EWI, Greece, GREK, and Spain, EWP, sovereign, banking, and corporate insolvency, that diktat coming through the ever developing Mario Draghi Regional Fascism paradigm, underwrites regional economic governance, and debt servitude as the way of life, as investors derisk out of debt trades and deleverage out of currency carry trades.

    Risk-off investment has replaced risk-on investment. This week nation investment loss leaders included: SCIN, 12.6%, SCIF, 12.3, SMIN, 9.1, PGAL, 9.0, GREK, 7.5, SMEZ, 5.7, EWI, 5.2, EWO, 4.8, IWC, 4.8, EWP, 4.7, EWN, 4.4, EZU, 4.2, INP, 3.7. And this week sectors loss leaders included: EPI, 6.4%, TAN, 5.7, SOCL, 5.0, ENY, 4.8, EUFN, 4.3, RZG, 4.3, XOP, 4.2, PSP, 3.9, DFE, 3.8, IAI, 3.9, KCE, 3.8, RZV, 3.7, CQQQ, 3.6, BJK, 3.5.

    II) ... The US is no longer a Global Hegemon: a new sovereignty and new seigniorage is emerging.

    The US Fed's massive purchases of bonds of all types has served to underwrite the US Dollar Hegemonic Empire, and created a fantastic Global Credit Bubble, AGG, which finally burst on July 1, 2014, as the Bond Vigilantes began calling the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.49%, with the result that the sovereignty and seigniorage of the Banker Regime began to fail.

    A new sovereignty and seigniorage is emerging. In the new normal Mario Draghi economy of shared sovereignty, and the new normal Jean Claude Juncker economy of negotiated government, the call of liberals for income redistribution will not be met, as the mandates of these two Eurozone Titans and their soon to be appointed regional fascist leaders, will establish increasing austerity for all of the EU's citizens; these will be replacement for the world central bank economy's financial intermediaries such as Bank of America, BAC, and asset manager tycoons, such as Blackrock, BK.

    The Eurozone will serve as the headquarters, and template, for the development of the Beast Regime of regional economic governance and totalitarian collectivism, which is synonymous with the Ten Toed Kingdom, which is replacing the US Dollar Hegemonic Empire, and the British Empire, now that the 30 Year US Government Bonds, EDV, and the US Ten Year Notes, TLT, are trading lower on the Bond Vigilante's Call of the Benchmark Interest Rate, $TNX, higher from 2.49% to 2.51%. Economic Collapse Blog posts The Dollar Is In Peril As Global The De-Dollarization Trend Accelerates. And Larry Summers posts The United States' Global Leadership Has Eroded.

    Peter Koenig writes in Global Research Russia's Petro-Ruble Challenges US Dollar Hegemony As China Seeks Development of Eurasian Trade.

    The seigniorage of diktat for regional security, stability and sustainability, will replace the seigniorage of investment choice, for investment gain.

    III) ... Physical possession of gold bullion is the only safe investment.

    Credit Bubble Stocks posts an analysis of the Commitment of Traders relating Silver Is A Very Crowded Long Again.

    The Silver Miners are in the "sweet spot" being short silver at today's price of 20.57. Currently, the market price of Silver, SLV, is determined by industrial demand. And inasmuch as the world has just entered Kondratieff Winter, the price of silver will soon fall lower with the debasement of all things that takes place in the final phase of the Business Cycle. Beginning in 2015, future price rises above 19.50, the current 200 day moving average, should be bought as such a rise would indicate an investment demand for silver. Gold, GLD, should be bought and stored in a physically safe place, as it is the only safe haven investment available.

    The Precious Metal Mining Stocks, GDX, GDXJ, SIL, and SILJ, such as Gold Miner, FNV, AWM, and Silver Miners, SSRI, FSM, are topped out in value, while only God knows how much higher Gold will go.

    Bloomberg reports Gold Reaches 16-Week High as Portugal Spur Haven Buying. The Google Finance chart of the Gold Miners, GDX, shows a 26% rise year-to-date, compared to 10% for Gold, GLD.

    The Gold Bugs Index, $HUI, has hit strong resistance. Look for the Gold Miners, GDX, to disconnect from the price of Gold, GLD, and tumble lower with all fiat wealth investments, such as World Stocks, ACWI, Nation Investment, EFA, Global Financial Institutions, IXG, and Dividends Excluding Financials, DTN, into the Pit of Financial Abandon.

    IV) ... The world has fully pivoted into Kondratieff Winter, the final phase of the Business Cycle.

    The Business Cycle is one of investing, and it is an experience in boom and bust caused by the expansion and contraction of credit, where people come to trust in monetary policies of sovereigns, who provide seigniorage, via monetary policies and schemes of control, for economic life.

    The entrance into the final phase of the Business Cycle, Kondratieff Winter, is marked by debasement devaluation, and economic deflation.

    Debt deflation, specifically competitive currency devaluation, is an inherent part of Kondratieff Winter; it doesn't come though nations selling their currencies, rather it comes through the combined action of bond vigilantes and currency traders carrying out a war of economic destruction against the Banker Regime; the result of which will be global economic deflation.

    On July 11, 2014, currency traders sold the Canadian Dollar, FXC, caused Commodity Currencies, CCX, to trade lower. The Loonie is the first of Banker Regime's coinage of currencies, to experience debasement.

    Political will and vision capitulate as the world pivots into Kondratieff Winter. Kathleen Geier posts Dems Abandon Economic Inequality Talk.

    Banking and corporate insolvencies soar in Kondratieff Winter. Calculated Risk reports Unofficial Problem Bank List Unchanged At 465 Institutions. Nancy Hanover For Profit Education Chain Corinthian College Implodes. Corinthian College plans to sell or close its colleges and trades schools, affecting 72,000 students in the US and Canada.

    The economic life experience in Kondratieff Winter is one of debt servitude. Kenneth Rogoff writes in Project Syndicate Europe's Debt Wish. It is difficult to see how Europe can revive economic growth without significant debt restructuring or rescheduling. Europe's politicians seem utterly unable to contemplate this scenario, thus placing a huge burden on the ECB.

    V) ... For those not inclined to invest in gold bullion, short selling is the next most viable investment strategy.

    One could use the a basket of Inverse Market ETFs, as collateral for short selling; these might include STPP, XVZ, EUO, YCS, MLPS, GLD, GYEN, GEUR, GGBP, YXI, EUM, DOG, SEF, EFZ, DDG, PSQ, REK, MYY, RWM.

    Conclusion: The trade lower in European Financials on July 7, 2014, was an extinction event, that terminated economic life experience as an investor; one's new economic life experience is that of a debt serf.

    Jul 13 11:35 AM | Link | Comment!
  • Fiat Wealth, That Is The Coinage Of The Banker Regime, Traded Lower In Value, As Fears Of Greek Insolvency Arose, As Mario Draghi Pressed Greece For Reforms, In Exchange For A Third Bailout

    1) .... On Monday July 7, 2014, The see saw destruction of Fiat Wealth got strongly underway as European Stocks led stocks worldwide lower, as investors assessed equity valuations following the biggest rally since March.

    Just after last Friday's July 3, 2014, Bespoke Investment Group report Big Tick Higher in Bullish Sentiment, on Monday, July 7, 2014, risk-on investing turned to risk-off investing, as investors deleveraged out of Euro Yen Carry Trade, that is out of EUR/JPY carry trades, such as RYAAY, AER, TI, SNY, VE, ING, FLTX, ICLR, ASMI, ERIC, MNK, LUX, ORAN, NVO, LYB, STM, EEFT, which drove Eurozone Stocks, EZU, FEZ, and the Eurozone Nations, EWO, EWI, EWP, GREK, PGAL, EWQ, EWG, EWN, EIRL, and EFNL, lower, which led Nation Investment, EFA, lower.

    The Global Growth Nations, Germany, EWG, Denmark, EDEN, and South Korea, EWY, traded lower. The credit sensitive, US Small Caps, IWM, IWC, traded lower; their trade lower documents the failure of credit.

    Israel, EIS, traded lower as Zero Hedge reports More Powderkegs: Israel Prepares For Gaza Escalation, Boosts Troops On Gaza Border.

    Emerging Europe, ESR, traded lower as Zero Hedge reports Russia Rushes To Seal Ukraine-Bypassing Gas Pipeline: Lavrov Pays Bulgaria A Visit. And as AP reports Bulgaria, Russia Push For South Stream Pipeline Blocked By EU.

    In an epic socio-economic change inflationism turned tod destructionism, as risk appetite turned risk aversion, as investors Volatility, ^VIX, trade by XVZ, derisked out of the debt trade in The National Bank of Greece, NBG, Ireland's Bank, IRE, and Banco Santander, SAN, which led European Financials, EUFN, lower; Argentina's Bank, BBVA, and India's Bank, IBN, HDB, led Emerging Market Financials, EMFM, lower; Regional Banks, KRE, Nasdaq Banks, QABA, and Stockbrokers, IAI, led Financial Services, lower; all of which led Global Financials, IXG, lower; this as Zero Hedge reports European Banks Are In Trouble.

    A trade lower in the Risk Assets, that is the High Beta ETFs, TAN, IBB, FEZ, TAN, IBB, PJP,SOCL, RZV, RZG, FLM, FDN, PNQI, XTN, FXR, CQQQ, PBS, IGV XRT, FPX, led World Stocks, ACWX, lower.

    Major Airlines and Regional Airlines, led Transports, XTN, lower.

    Global Producers, FXR, such as GPK, GRA, DOW, SEE, and LYB, traded lower.

    Investors sold out of the riskiest of Risk Assets. Rental and Leasing Companies, such as HEES, and URI, led Small Cap Pure Value Stocks, RZV, lower. And Building Materials, led Small Cap Pure Growth Stocks, RZG, lower.

    Global Infrastructure, UTF, led Closed End Funds, GCE, lower.

    Aluminum Companies, such as AA, and Metal Manufacturing Companies, XME, traded lower.

    Fracking Companies, IEZ, and Energy Production Companies, XOP, traded lower.

    In the Defensive Sectors, Global Energy, IPW, traded lower, as Bloomberg reports Defense Trade Coming Undone in $2 Trillion S&P 500 Rally

    The market vane ETFs, Extended Market, VTF, and Convertible Securities, CWB, traded lower.

    In the Yield Bearing Sectors, AMJ, EMLP, MLPJ, FIW, SEA, IDOG, IGF, IST, PSP, traded lower.

    Dividends Excluding Financials, DTN, led by Dow Chemical, DOW, traded lower.

    Natural Gas, UNG, UNL, Cotton, BAL, Nickel, NINI, Sugar, SGG, Wheat, WEAT, and Corn, CORN, led Commodiites, DBC, DJP, lower; it appears that Agricultural Commodities, RJA, have hit support, after having gone through a strong sell off, now Base Metals, DBB, will be trading lower on diminished outlook for global growth and trade.

    Ed Yardeni posts The Four Phases Of The Bull Market.

    FT reports Short selling drops to lowest level since Lehman. In the Inverse Market ETFs, MLPS, RWM, MYY, EFZ, SEF, YXI, DOG, PSQ, EUM, XVZ, traded higher; these could under close supervision serve as the basis of collateral for a short selling strategy. as the S&P 500, $SPX, SPY, has traded lower from its Elliott Wave 5 High.

    The Proshares 200% Bear Market ETFs, SQQQ, SSG, SKF, EPV, SCC, SZK, DUG, EFU, traded higher. And The Direxion 300% Bear Market ETFs, ERY, FAZ, SOXS, GASX, DPK, YANG, EURZ, traded higher. Their turn higher evidences that the world stock market has turned from a bull stock market to a bear stock market.

    The world is pivoting through peak credit. Popular Notes and Bonds, SHY, EU, TLT, EDV, FLOT, LQD, LWC, PICB, BWX, and MBB, bounced higher from last week's sell off, as the Benchmark Interest Rate, ^TNX, traded slightly lower from its recent high of 2.65%, to 2.62%; its likely objective is 2.53%

    With the failure of credit on July 1, 2014, seen in Aggregate Credit, AGG, trading lower in value as the bond vigilantes called the Interest Rate on the US Ten Year Note, ^TNX, higher from 2.49%, the world is moving through a historic economic inflection point.

    The world is pivoting through peak wealth. Fiat Wealth, defined as World Stocks, VT, Global Financial Institutions, IXG, Nation Investment, EFA, and Yield Bearing Investments, DTN, together with Aggregate Credit, AGG, is is literally being sawn asunder by the failure of trust in the world central banks' monetary authority to continue to provide investment gain, and global economic growth, as is seen in the Bloomberg report European Stocks Drop With Treasuries as Commodities Fall, and as is seen in the Zero Hedge report Peak Abenomics.

    The Business Cycle is one of investing, and its nascent entrance into its final phase, that is Kondratieff Winter, is seen in trade lower in European Financials, EUFN, on June 24, 2014, which is the result of a trade lower in the Euro, FXE, beginning in early May 2014, and its full entrance with the failure of credit, seen in Aggregate Credit, AGG, trading lower in value on July 1, 2014. Formerly, investment was the way of life; now disinvestment is the way of life.

    Economics is based upon a number of isms; the economic foundation of liberalism is giving way to authoritarianism.

    The very nature of economics changed with the trade lower in Credit Investments. that is Aggregate Credit, AGG, on July 1, 2014. It was an extinction event, that terminated the debt investor; and the trade lower in Equity Investments, that is World Stocks, VT, Nation Investment, EFA, Global Financial Institutions, IXG, and Yield Bearing Investments, DTN, on July 7, 2014, terminated the equity investor.

    With investors going extinct, on the failure of credit, and the soon coming death of currencies, liberalism's dynamos are powering down, and authoritarianism's dynamos are powering up.

    The three dynamos of creditism, globalism and corporatism developed the Banker Regime Seigniorage of fiat money that coined fantastic fiat wealth in Equity Investments, VT, Yield Bearing Investments, DTN, Nation Investment, EFA, Banking Investments, IXG, and most importantly Credit Investments.

    Debasement of the coinage of fiat wealth commenced on July 7, 2014; debasement of the coinage of fiat money, specifically debt deflation, is still yet to come, the reason being as WSJ report Currency Reserves Swell in Asia.

    Out of failure of trust in the Banker Regime's monetary policies of investment choice and schemes of credit liquidity, the Beast Regime will rise to rule economics with new monetary policies of diktat and schemes of debt servitude.

    The singular dynamo of regionalism will develop the Beast Regime's seigniorage of diktat money, which will coin awesome mandated poverty, where austerity is one's economic experience.

    The Bond Vigilantes, are in control of the Bow of Economic Sovereignty, and in calling the Interest Rate on the US Ten Year Note, ^TNX, from 2.49% have effected an investment coup d etat, destabilizing sovereign authority in the Eurozone, and in the US. They will be increasingly successful, in calling the Benchmark Interest Rate progressively higher, producing a new sovereignty and a new seigniorage.

    Fiat Money defined as the combination of Aggregate Credit, AGG, and Major World Currencies, DBV, and Emerging Market Currencies, CEW, will soon literally burst apart at the seams. The failure of Credit came on June 1, 2014, with the trade lower in Aggregate Credit, soon the Sovereign Currencies, will trade lower in value; the death of currencies is at hand; and as John Rubino writes in USA Watchdog, The Money Bubble Will Pop.

    2) .... On Tuesday July 8, 2014, fears over the solvency of Greece, GREK,and sustainability of its Bank arose, as The National Bank of Greece, NBG, Ireland's Bank, IRE, Banco Santander, SAN, as well as Lloyds Banking Group, LYG, drove European Financials, EUFN, lower, as Bloomberg reports Greece Resists Troika on Third Bailout as Mario Draghi Protests Delays.

    In addition to the trade lower in the European Financials, EUFN, Nomura Holdings, NMR, Banco Santander Brazil, BSBR, Argentina Bank, BBVA, Bank of America, BAC, Regional Banks, KRE, led Global Financials, IXG, lower, evidencing the failure of credit which commenced on July 1, 2014,with the trade lower in Aggregate Credit, AGG.

    The trade lower in Stockbrokers, IAI, Investment Bankers, KCE, such as MS, GS, and the Asset Managers, such as BLK, EV, communicates that the age of securitization and financialization, to coin fiat wealth, which was built on trust in the monetary policies of the world central banks,for investment gain is over, through, finished and done. The era of the investor is relegated to the dustbin of history.

    A new age of trust in the mandates of regional fascist leaders to coin totalitarian collectivism for regional security, stability and sustainability is underway. The era of the debt serf has come of age.

    The trade lower in the City of London, Lloyds Banking Group, LYG, from the middle of a broadening top pattern, communicates the capitulation of the UK's David Cameron, to the monetary authority of the ECB, and to the economic sovereignty of the EU.

    The monetary policies of the Banker Regime no longer stimulate global economic growth and trade, as is seen in Nation Investment, EFA, trading strongly lower on the trade lower in the UK, EWU, EUUS, as Shaun Roberts reports Slow Down In The UK's Rate Of Economic Growth, The Office for National Statistics released this data: Total production decreased by 0.7% between April 2014 and May 2014; Manufacturing was the largest contributor, decreasing by 1.3%. He adds, In the three months to May 2014, production and manufacturing were 11.3% and 7.2% respectively below their figures reached in the pre-downturn GDP peak in Q1 2008.

    Norway, NORW, and Sweden, EWD, traded lower as the Eurozone Financials, EUFN, Eurozone Stocks, EZU, FEZ, European Small Cap Dividends, DFE, and European Nations, led by Greece, GREK, continued lower. India, INP, SCIN, Israel, EIS, and the US Small Caps, IWC, IWM, traded lower. Electric Utility, HNP, and China Technology, CQQQ, led China, YAO, lower; as Bloomberg reports Sensex Falls Over 500 Points The BSE Sensex and Nifty slumped more than 2 percent on Tuesday, marking their biggest single-day fall in over 10 months and retreating from record highs hit earlier in the session, after the railway budget raised worries the government would slash spending.

    Nation investment in New Zealand, ENZL, traded to a new rally high as Brown Brothers Harriman reports The New Zealand Dollar Rose To A New Multi Year High Just Above $0.88. Fitch lifted the outlook for the country's AA rating to positive from stable. The central bank meets on July 23 and is expected to hike rates again. A 25bp hike would be the fourth hike this year and would put the cash rate at 3.25%.

    In Yield Bearing Investments, Leveraged Buyouts, PSP, Shipping Stocks, SEA, and International Telecom, IST, traded lower. Dividends Excluding Financials, DTN, were led lower by the debt trade Verizon, VZ.

    A trade lower in the Risk Assets, that is the High Beta ETFs, TAN, SOCL, FDN, PNQI, CQQQ, IBB, IGV, IGN, PJP, RZV, RZG, PBS, CARZ, FONE, XRT, PPA, QQQ, FPX, forced World Stocks, ACWX to trade lower. Data Storage Devices, traded strongly lower.

    On Tuesday, July 8, 2014, fiat wealth, that is, the coinage of the Banker Regime, traded lower in value as fears of Greek Insolvency arose, as Mario Draghi pressed Greece for reforms in exchange for a Third Greek Bailout.

    Aggregate Credit, AGG, bounced slightly higher, but resides below its January 2014, through July 1, 2014 rally high as Popular Notes and Bonds, such as SHY, EU, TLT, EDV, LQD, LWC, PICB, BWX, and MBB, continued to bounce higher from last week's sell off, as the Benchmark Interest Rate, ^TNX, traded slightly lower from its recent high of 2.65%, to 2.57%, on its way lower to a likely support at 2.53%. Junk Bonds, JNK, traded lower with stocks.

    Jul 08 10:00 PM | Link | Comment!
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