Saturday, February 16, 2013

As The World Turns

By, Chris Rossini
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Below you'll find snapshots of how major markets around the world ended the week.

U.S. - Dow Jones Industrial Average -.08%

China - Shanghai Composite Index +.55%

Japan - Nikkei +.19%

UK - FTSE +1.03%

Germany - DAX Composite -.77%

Spain - Madrid General Index -.33%

Brazil - Bovespa Stock Index -1.02%

Israel - Tel Aviv 25 Index +.85%

Switzerland - Swiss Market Index +1.41%

Gold -3.43%

Silver -5.12%

Crude Oil +.45%

U.S. Dollar Index +.42%

Euro -.03%

U.S. 30YR T-Bond Yield +.38%

Bitcoin Price = 27.10


  1. Do you think bitcoin price will drop back before rising again?

  2. Rico,

    Ironically, based on fundamentals and metrics I track it appears that bitcoins are getting more undervalued despite the rising price.

  3. An investment demand for gold will be commencing soon.

    The chart of the S&P 500 Weekly, $SPX, SPY, crested February 11, 2013, at 152.11, in An Elliott Wave 5 High.

    World Stocks Weekly, ACWI, crested January 28, 2013, at 50.34, in an Elliott Wave 2 High.

    Keynesian and Monetarist stimulus, specifically the US Fed’s ZIRP, and Quantitative Easing, the ECB’s LTROs and OMT, the BoJ’s Unlimited Easing and PBOC monetary injections have stimulated global growth and trade, as well as have developed corporate profitability and rewarded investors who went long when QE1 commenced, or who hung in with their investments as they recovered.

    Sovereignty begets seigniorage, that is moneyness. Where seigniorage exists, that is where moneyness manifests, there exists a sovereign producing it.

    Sovereign nation states, and their central banks, such as the US Fed, the ECB, the BoJ, and the PBOC, are the sovereigns that have produced the seigniorage that stimulating Nation Investment, EFA, Small Country Nation Investment, IFSM, Emerging Market Investment, EEM, Global Production, FXR, Dividend Investment in REITS, VNQ, as well as risk investment in Leveraged Buyouts, PSP, Junk Bonds, JNK, Senior Bank Loans, BKLN, Emerging Market Bonds, EMB, Spin Offs, CSD, and IPOs, FPX, as is seen in the ongoing two year combined chart of EFA, FXR, VNQ and PSP. The Global Producers, FXR, have provided the best capital return, and the REITS, VNQ, the second best.

    The Sovereignty of Liberalism is at its zenith. And the US is Liberalism’s Premier Sovereign. The US, the second of two iron legs of global hegemonic power since the late 1700s, is as President Obama just finished speaking in the State of the Union Address, manifesting Peak Hegemony.

    The adoption of the Milton Friedman Free To Choose Floating Currency Regime, produced Liberalism’s Peak Currencies, Peak Nation Investment, Peak Global Production, Peak Wealth, Peak Sovereignty, Peak Central Bank Wealth, and Peak US Hegemony.

    Dollar Hegemony is at its peak, as Allan Sloan communicates in Fortune Magazine article The Fed’s Big Dollar Gamble. Ben Bernanke's low interest rate policy has driven down the dollar; the Fed’s keeping-lowering-rates program doesn’t have an an indefinite shelf life. The bottom line is that pharmaceutical stimulus is forever; but Fed stimulus isn’t. It’s as Ron Paul, in Lew Rockwell, writes we are seeing The End Of Dollar Hegemony.

    New sovereignty, new sovereigns, and new sovereign wealth is coming, The unwinding of the Euro Yen Currency Carry Trade, that is the EUR/JPY, together with competitive currency devaluation, will be the two active agents destroying fiat wealth as well as the global hegemonic power of the US.

    Inflationism is turning to Destructionism. Stocks are turning lower on the exhaustion of the world central banks’ monetary authority and resulting inability to stimulate global growth and corporate profitability, as well as on the dynamic that the monetary policies of the US Fed, the ECB, the BoJ, and the PBOC, have crossed the rubicon of sound monetary policy, and have turned “money good” investments, bad.

    Gold, GLD, is both a currency and a commodity; and it has now likely been fully debased by the rise of the World’s Major Currencies, DBV, and Emerging Market Currencies, CEW; and soon will be trading higher as fiat wealth of World Stocks, ACWI, Base Metals, DBB, Major World Currencies, DBV, and Emerging Market Currencies, CEW, and Bonds, BND, fall into the Pit of Financial Abandon.