Market Watch reports Euro jumps as Draghi dismisses deflation threat. The Euro, FXE, rose 1.1%, taking European Financials, EUFN, 3.5%, higher, drawing Nation Investment, EFA, 2.5%, Global Financials, IXG, 1.5%, and World Stocks, VT, 1.5%, higher, the week ending February 7, 2014.
Eurozone Nations rising included Greece, 7%, Ireland, EIRL, 5%, Spain, EWP, 5%, Portugal, PGAL, 4%, France, EWQ, 4%, Finland, EFNL 4%, Italy, EWI, 3%, Austria, EWO, 3%, Netherlands, EWN, 3%, German Small Caps 3%, Germany, EWG, 2%, Eurozone Stocks, EZU, 3% and Europe Small Dividend Stocks, DFE, 2%.
Sectors rising included Nasdaq Internet, PNQI 2%, Internet Retail, FDN 2%, Semiconductors, SOXX 1%, Automobiles, CARZ 1%. Yield Bearing Sectors rising included International Utilities, IPU 3%, and Shipping, SEA, 2%.
The Interest Rate, TNX, rose from this month's low of 2.6% to 2.7%, forcing Aggregate Credit, AGG, US Government Bonds, GOVT, and Ten Year US Government Bonds, TLT, lower from their recent parabolic rises higher.
Liberalism was characterized by inflationism. In the final phase of liberalism, that is since August 2008 through January 2014, the Fed's balance sheet inflated from $900 BN to $4.1 TN. The speculative leveraged investment community, in providing debt trades and currency carry trades, was the transmission mechanism of economic activity.
Now investors are derisking out of debt trades and currency carry trades, and bond vigilantes are once again calling the Benchmark Interest Rate, ^TNX, higher from 2.6%, all on fears that the world central banks monetary policies have crossed the rubicon of sound monetary policy. These actions will increasingly stimulate economic destructionism, in particular economic deflation, thus commencing the paradigm and age of authoritarianism. Liberalism's German capitalism, European Socialism, Greek Socialism, and China's Communism are relics of a bygone era of the investor and investment choice.
Under authoritarianism, regional leaders, providing mandates of public private partnerships are the transmission of economic activity, which organize the factors of production, marshall banking resources, disburse fiscal spending, and appropriate private property for regional security, stability and sustainability, to counteract ever increasing destructionism. Regional economic fascism is the singular economic system, which asserts regional property rights and establishes the debt serf and debt serfdom.
Liberalism's fiat money will increasingly be replaced by authoritarianism' diktat money, and requires oaths on the part of workers as Maud van Gaal of Bloomberg reports "'I swear that I will do my utmost to preserve and enhance confidence in the financial-services industry. So help me God.' The oath, the first of its kind in Europe, became binding on board members of Dutch banks last month as the government sought to rein in an industry with assets more than four times the size of the country's economy. All 90,000 Dutch bank employees must take the pledge, or a non-religious affirmation, starting the second half of this year. They'll be punished should they break new ethical rules, Banking Association Chairman Chris Buijink said."
Open Europe relates Die Weltreports that German crafts trades are concerned about the European Commission's plans to facilitate access to skilled professions in all EU member states. The paper cites the President of German Confederation of Skilled Crafts Peter Wollseifer as saying that "the dual training [system] in Germany is endangered by the new plans from Brussels".
Open Europe relates AFP The Slovenian Constitutional Court on Friday ruled to suspend the introduction of a new property tax, from which the government was planning to raise €400m this year as part of its effort to cut public deficit.
Open Europe relates FT reports In April, Portugal will begin holding weekly lotteries in which luxury cars will be given away as prizes to citizens who ask retail businesses to provide them with a receipt with their personal tax number, as part of an effort fight tax evasion.
In the paradigm and age of authoritarianism, diktat and the physical possession of gold bullion, are the two sole forms of sustained economic resource. Gold, $GOLD, has been in breakout since December 27, 2013, and an investment demand for gold commenced on January 24, 2013, when World Stocks, VT, traded lower.