Thursday, January 5, 2012

Astonishing Jump in AAII Bullish Sentiment

See here and here.

1 comment:

theyenguy said...

Perhaps the Investors Sentiment is base upon the rally in a number of Dollar Stocks.

But, on going currency debasement by the world central banks has finally had a major consequence. Today, June 5, 2011, was a pivotal day in financial history, as all forms of fiat wealth, that is currencies, stocks, commodities, and bonds, turned lower in value, while the chart of the gold ETF, GLD, shows an increased in value. Bad central bank credit policies have destabilized all fiat financial instruments, especially global financials, IXG, and world treasury bonds, BWX. Diktat is rising as a form of money, which is driving the world into regionalization for security and stability. A Global Eurasia war will be waged in Syria and Iran.

Fears of sovereign insolvency and banking insolvency turned currencies, stocks, commodities, and bonds lower today.

World Currencies and Emerging Market Currencies traded lower.

The trade lower in Germany’s Deutsche Bank, and Spain’s Banco Santander, lead European Financials, lower, which turned World Financials, lower. Spain, Italy, and lead Europe, lower.

Falling currencies turned the world’s mining stocks and the world’s mining and steel ETFs lower. Energy stocks also turned lower today. Natural resource investing became more unprofitable due to falling currency values. Debt deflation and exhaustion of central bank credit, is causing an unwinding of carry trade investment and stimulating derisking out of natural resource stocks worldwide.

It is the world central banks’ bad credit policies that are making money bad. Bad money is destabilizing the world economically and politically. We are witnessing the beginning of the end of the AAA era. Richard Russell, publisher of Dow Theory Letters said in King World News interview, We are watching the greatest debt bubble in history about to deflate, and it won't be a pretty sighThe investment, political and economic tectonic plates are shifting, and an authoritarian tsunami is on the way.

Seigniorage, that is moneyness, will no longer come from banking and national governments, but rather come from the diktat of regional sovereigns. Currencies are now sinking, and global financial derisking and deleveraging is underway, with the result that the new dynamo of diktat is driving economic and political action. Political capital is replacing investment capital. The seigniorage of fiat money, is being replaced by the seigniorage of diktat.

With the death of fiat money, regional global governance is rising to replace sovereign nation states, as nations loose their debt sovereignty. This is foretold in bible prophecy of Revelation 13:1-4 and Daniel 2:31-33. Life in the Euro zone will be characterised by collectivism, as statism rises to govern all.

The only way to preserve wealth is to buy and take possession of gold bullion.