tag:blogger.com,1999:blog-7667270342838967429.post273407169822871805..comments2023-10-30T02:21:06.507-07:00Comments on Merkelnomics: ECB enters unchartered territory - with one footCarsten Brzeskihttp://www.blogger.com/profile/10512231324222637659noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7667270342838967429.post-16053958882416810672014-06-05T19:43:29.199-07:002014-06-05T19:43:29.199-07:00This inquiring mind asks will aggregate demand inc...This inquiring mind asks will aggregate demand increase to any significant extent to pull the Eurozone economy up out of deflation? <br /><br /><br />The bond vigilantes, that is the Primary Dealers, and their clients, have been in control of the Bow of Economic Sovereignty, that is the Interest Rate on the US Ten Year Note, ^TNX, since May of 2013, and have been calling it higher from 2.49%, to 2.58% where it stands today. With the result that debt deflation commenced in Major World Currencies, DBV, and Emerging Market Currencies, CEW, and which in turn commenced destruction of Aggregate Credit, AGG. <br /><br /><br />Thus fiat money, defined as the combination of Major World Currencies, DBV, and Emerging Market Currencies, CEW, together with Aggregate Credit, AGG, is starting to die. The death of fiat money in June 2014, is an inflection point in mankind’s history. <br /><br /><br />The failure of Sovereign Currencies has commenced, beginning with the Swedish Krona, FXS, and the Brazilian Real, BZF, and is an economic and political coup d'etat, that has commenced destructionism which is seen in Nation Investment in Sweden, EWD, and Brazil, EWZ, EWZS, trading lower. <br /><br /><br />The deflationary potential of unwinding currency of carry trade investments worldwide and associated debt trades, countervails against anything the ECB has done, or has announced. The tailwinds of economic deflation will be the perfect storm to introduce Kondratieff Winter, which will produce many new normals, as the world has passed from the paradigm and age of liberalism, meaning freedom from the state, into that of authoritarianism, with the death of sovereign currencies in May 2014, and June 2014. <br /><br /><br />All things have fathers, that is starters. <br /><br /><br />The Banker Regime was born in 1971 on the genius of Milton Friedman’s principle of Free to Choose Floating Currencies; and fiat money came of age, where QE1 and Global ZIRP birthed the investor as the centerpiece of economic activity. <br /><br /><br />The Beast Regime was born in June 2014 on the genius of Mario Draghi’s imposing negative interest rates on its overnight depositors; and diktat money has come of age, where the June 2014 Mario Draghi ECB Mandate birthed the debt serf as the centerpiece of economic activity. <br /><br /><br />Inflation was the economic dynamic of growth coming from the exercise of investment choice, which was supported by the dynamos by creditism, corporatism, and globalism; these engines of democratic nation state governance are winding down, on the death of sovereign currencies. <br /><br /><br />Destruction is the economic dynamic of deflation coming from derisking and deleveraging out of investment choice, which is countervailed by the dynamo of regionalism; this engine of regional economic governance is winding up, as leaders meet in summits and workgroups to renounce national sovereignty and to announce regional pooled sovereignty, coming from regional framework agreements, such as seen in the Russia China Energy Deal, which has created the Eurasia region of economic governance, and is birthing diktat money, defined as the mandates of sovereign regional leaders to establish regional security, stability and sustainability. <br /><br /><br />Thus both peak fiat wealth, defined as the combination of Equity Investments and Credit Investments, as well as the Beast Regime were established by Mario Draghi’s June 5, 2014 ECB Mandate.<br />theyenguyhttps://www.blogger.com/profile/08515095308836729043noreply@blogger.com