Ben Bernanke’s Midas Touch via record stock market highs
From the International Business Times: (bold mine)
U.S. stocks shot into record territory Thursday after the head of the U.S. central bank hinted that its current unprecedented quantitative easing policy will not end any time soon.On Wednesday, Federal Reserve Chairman Ben Bernanke, speaking after the bank's key interest-rate setting panel issued a nondefinitive statement of its intentions, said that the current employment level is overstating the health of the job market.That comment suggested the central bank would keep buying large amounts of bonds, a policy it has been pursuing to suppress long-term interest rates. That policy also has helped lift U.S. equities.
Bad news is good news. Each account of bad news extrapolates to the prospects of more financial market bailout via the Bernanke Put. And Wall Street loves this transfer or implicit subsidy at the expense of the economy. [This isn't isolated to the US but applies everywhere]
Here is what I wrote last Sunday
Yet a stock market boom can be engineered by governments that could destroy historical precedents. Venezuela should be an example. Venezuela’s stock market has been up a stratospheric 160% year to date. This translates to star bound 460% in one and a half years. But Venezuela’s deceiving outperformance comes at a heavy toll: the collapse of her currency the Bolivar which means rising stocks are symptoms of hyperinflation.
Well record US stock market highs came in the backdrop a huge dive in the US dollar.
More signs of financial market engineering.
This week, the chart of the S&P 500, $SPX, SPY, shows a 2.9% rise to close at 1.680, manifesting an Elliott Wave 2 Up, after having achieved a recent Elliott Wave 5 Up High as presented in Daneric’s post Elliott Wave Update ~ Thursday 11 July 2013.
ReplyDeleteOf note the Elliott Wave Surfer chart of the EUR/JPY shows an Elliott Wave Top on May 24, 2013, when the Interest Rate on the US Ten Year Note, ^TNX, rose to 2.01%. This seen also in the Stockcharts.com chart of FXE:FXY. It was at this time that the leverage of carry trade investing collapsed, as is seen in the daily chart of the Optomized Carry Trade, ETN, ICI.
The Interest Rate on the US 10 Year Note, $TNX, closed lower at 2.60%, enabling Aggregate Credit, AGG, to rise 0.92% this week.
This week Commodities, DBC, rose 2.3%; the chart of West Texas Intermediate Crude, $WTIC, rose 2.5%, to close at 106.24; the chart of Spot Gold, $GOLD, rose 5.8%,to close at $1,285, as the US Dollar, $USD, traded 1.8% lower to close at $83.12.
The power of this week’s rally is seen in the chart of World Stocks, VT, in relation to Aggregate Credit, AGG, that is VT:AGG, rallying to its highest ever value, suggests that Peak Stock Wealth, VT, was achieved the week ending July 12, 2013, as investors used margin credit to take stocks to their likely peak achievement, on the leverage of the world central banks’ monetary policies of investment choice, and schemes of credit expansion, such as quantitative easing. CBS reports Stocks hit new high after Bernanke speech buoys investors, where the Fed Chairman commented at a NBER event, "So you put that all together, and I think you can only conclude that highly accommodative monetary policy for the foreseeable future is what's needed in the U.S. economy".
In as much as sovereignty begets seigniorage, that is moneyness, this week’s surge of seigniorage likely marks Liberalism peak sovereignty: World Stocks, VT, are at full leverage over Aggregate Credit, AGG, as is seen in VT:AGG. And Nation Investment, EFA, is at full leverage over World Treasury
Bonds, BWX, as is seen in EFA:BWX. The Milton Friedman, Free To Choose, Floating Currency, Banker Regime of democratic nation states has achieved its zenith in terms of political, economic and monetary power.
It is Jesus Christ, working in the economic and political administrative plan of God, Ephesians 1:10, who has produced Liberalism’s greatest, that is most complete, economic and political experience.
Through “extinction protocol”, He released the Four Horsemen of the Apocalypse beginning in May of 2010 with Greek Bailout I. As presented in bible prophecy of Revelation 6:1-8, the Rider on the White Horse, who has a bow without any arrows, is transferring the baton of sovereignty, from democratic nation states to regional nannycrats, with a goal of terminating democracy throughout the world, first in Greece, with the provision of Three Greek Bailouts, second, in Cyprus with a Bailin of Cyprus bank depositors, and third in Egypt with a military coup.
When the Bretton Woods system, synonymous with the Milton Friedman Free To Choose floating currency system, really gives way, America’s Dollar Empire, that is the US Dollar Hegemonic Empire, and its globe-spanning archipelago of military bases, will collapse, and the Ten Toed Kingdom of Regional Governance of Daniel 2:25-45, will emerge, where ten regional zones of increasing iron diktat will emerge out of today’s clay democracy.
The Ten Toed Kingdom is synomous with its Beast Regime of regional governance and totalitarian collectivism, seen in Revelation 13:1-4, which presents ten zones of regional governance, as ten horns on a beast, that also has seven heads, suggesting totalitarian collectivism, where the seven heads symbolize mankind’s seven institutions: 1) Education, 2) Banking, Finance, Commerce and Trade, 3) Body Politic, 4) Military, 5) Religion, 6) Media, 7) Science and Technology.