There Is Panic Behind The scenes As Two-Thirds Of Global PMIs Decline In May, Velocity Of Money Reaches All Time Low. Crash Dead Ahead!

Greetings,

Get prepared. Come to your senses. Join on to your own kind quickly. The devils are telling you slyly that the time of their world is at hand and it will soon be no more.

If you refuse to take heed, you will suffer devastation. Make haste ,because everything that you are accustomed to and everything that you are familiar with is about to be wiped off the map. The wealth of this world will be totally destroyed.

My people, “No.1– To know the truth of the Presence of the God of Truth and that His presence is the Salvation of the Lost and Found people of America is to know your life and its happiness.

No. 2 — Truth is in favor of you and me; for the truth of our enemies whom we have been serving here in the U.S.A. for over 400 years (whom we did not know to be our enemies by nature) is the truth that the Black Man must have knowledge of to be able to keep from falling into the deceiving traps that are being laid by our enemies to catch us in their way which is opposed to the way of righteous of whom we are members.”–Chp.1(o.s.h.a.)

Just as sure as the earth rotates, this is the end of anglo wealth, power, and rule!!!!

…”I ask you to remember this: in the parable in the Bible of the rich man and Lazarus — which means none other than the white and Black people of America — the rich man died deprived of authority and wealth. In the anguish of the torment of his loss of wealth and power, the parable refers to the rich man as being in hell. And in this condition, the beggar (Lazarus) saw no hope in begging that once rich man any longer for some of his sumptuous food. Then he turned to go for self (Abraham’s). The prophecy which Abraham was the recipient of only means that after 400 years of our enslavement, all these things are coming to pass. I ask you to be in time and accept the truth and not mix up the truth with falsehood while you know it for the sake of untrue friendship.”–Chp.1(o.s.h.a.)

Two-Thirds Of Global PMIs Decline In May, Velocity Of Money Reaches All Time Low. Crash Dead Ahead!

Source: http://investmentwatchblog.com
The velocity of money (also called velocity of circulation of money and, much earlier, currency) is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period.[3] In other words, it is the number of times one dollar is spent to buy goods and services per unit of time.[3] If the velocity of money is increasing, then more transactions are occurring between individuals in an economy.[3] Although once thought to be constant,[citation needed] it is now understood that the velocity of money changes over time and is influenced by a variety of factors.[4]

http://en.wikipedia.org/wiki/Velocity_of_money

First, let’s look at M1, which is a fairly narrow definition of the money supply. The following is how Investopedia defines M1…

A measure of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, checking accounts and Negotiable Order of Withdrawal (NOW) accounts. M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency. It does not contain “near money” or “near, near money” as M2 and M3 do.

As you can see from the chart posted below, the velocity of M1 normally declines during a recession. Just look at the shaded areas in the chart. But a funny thing has happened since the end of the last recession. The velocity of M1 has just kept falling and it is now at a nearly 20 year low…

Next, let’s take a look at M2. It includes more things in the money supply. The following is how Investopedia defines M2…

A measure of money supply that includes cash and checking deposits (M1) as well as near money. “Near money” in M2 includes savings deposits, money market mutual funds and other time deposits, which are less liquid and not as suitable as exchange mediums but can be quickly converted into cash or checking deposits.

In the chart posted below, we can once again see that the velocity of M2 normally slows down during a recession. And we can also see that the velocity of M2 has continued to slow down in the “post-recession era” and has now dropped to the lowest level ever recorded…

 

This is a highly deflationary chart.

It clearly indicates that economic activity in the U.S. has been steadily slowing down.

And if we are honest, we have to admit that we are seeing signs of this all around us. Major retailers are closing down stores at the fastest pace since the collapse of Lehman Brothers, consumer confidence is down, trading revenues at the big Wall Street banks are way down, and the steady decline in home sales is more than just a little bit alarming.

In addition, the employment situation in this country is much less promising than we have been led to believe. According to a report put out by the Republicans on the Senate Budget Committee, an all-time record one out of every eight men in their prime working years are not in the labor force…

http://theeconomiccollapseblog.com/archives/the-velocity-of-money-in-the-u-s-falls-to-an-all-time-record-low

In brief: as the below table shows, out of the 23 countries that have reported so far, 8 reported improvements in their manufacturing sectors in May, while 15, or two-thirds, recorded a weakening in mfg data from April. That’s the bad news, and an indication that the latest upswing in the global manufacturing economy may be ending. The good news: despite the modest decline, there were only 7 countries “contracting” or in negative territory (below 50) and 16 in positive. In particular, France, Korea, and Norway moved from expansion to contraction.

http://www.zerohedge.com/news/2014-06-02/two-thirds-global-pmis-decline-may

ISM MANUFACTURING INDEX UNEXPECTEDLY FALLS

http://www.businessinsider.com/ism-manufacturing-may-2014-2014-6

Manufacturing data is fresh out from Europe, and it’s fairly weak looking. While some countries are doing well (EG Spain), the big powerhouses like Germany and France aren’t so great. German manufacturing has slowed to a 7-month low. Meanwhile, France is at a 4-month low, and it remains in contraction.

http://www.businessinsider.com/european-manufacturing-pmi-2014-6

UH-OH: Deflation Hits Germany

There’s lots of evidence this morning that the German economy isn’t looking so hot. Earlier we mentioned how the country’s manufacturing industry has fallen to a 7-month low.

Now it’s seeing outright deflation in several regions, with prices falling on a sequential basis.

http://www.businessinsider.com/german-inflation-2014-6#ixzz33UQQpBEr

Euro drops after euro-zone PMI falls short of forecast

http://www.marketwatch.com/story/euro-drops-after-euro-zone-pmi-falls-short-of-forecast-2014-06-02?link=MW_latest_news

Japan Orders and Output Decline Second Month; Does it Mean Anything?

Orders and output in Japan contracted for the second month. However, the decline was small and it comes on the heels of a tax increase that shifted demand forward a couple months ago.

Markit reports Slower Decline in Japanese Manufacturing Output in May

Read more at

http://globaleconomicanalysis.blogspot.com/2014/06/japan-orders-and-output-decline-second.html#ukDVczrUD6h2iOmq.99

Stocks are hitting new highs again… but this could be a serious warning sign

From Bloomberg:

Lately, the higher the Standard & Poor’s 500 Index goes, the less investors care.

About 1.8 billion shares traded each day in S&P 500 companies last month, the fewest since 2008, according to data compiled by Bloomberg. When the gauge hit an all-time high on May 23, only about 20 of its 500 companies reached 52-week highs, the data show. That’s the lowest number in a year.

When volume and breadth wane even as stocks surge, it’s a warning sign that has preceded losses in the past, according to Sundial Capital Research Inc. in Blaine, Minnesota. Hayes Miller, who helps oversee $57 billion at Baring Asset Management Inc., says the skepticism shows investors distrust a rally built on Federal Reserve stimulus.

“Breadth is suggesting that the market is topping,” Miller, the Boston-based head of multi-asset allocation for Baring, said in a May 28 telephone interview. “This is not a good starting point for buying equities at this price. We all know that investors are induced into risk assets by central bank policies, which keep your safer options very unattractive.”

Exchange-traded and mutual funds that buy U.S. shares saw $1.2 billion in outflows this quarter, while bonds received $34 billion, data compiled by Bloomberg and the Investment Company Institute show. The gap is poised to be the largest since September 2012.

Stock Outflows

Individuals investing through the funds only started buying stocks in 2013 after the S&P 500 more than doubled from its 2009 low. They added more than $150 billion to funds last year after withdrawing $260 billion in the previous four, data compiled by ICI and Bloomberg show.

“Over the past couple of months we’ve seen an increase of flows out of stocks and back to bonds, which has been a surprise,” Cameron Hinds, the Lincoln, Nebraska-based regional chief investment officer for Wells Fargo Private Bank, which has about $170 billion under management, said in a May 29 phone interview. “We’ve also been surprised by the degree to which the yield on the 10-year Treasury note has drifted lower.”

The benchmark U.S. 10-year note saw its yield drop to 2.44 percent last week, the lowest in 11 months. The S&P 500, rose 2.1 percent to 1,923.57 last month, extending its gain since December to 4.1 percent.

At an investor conference last week, Goldman Sachs Group Inc. President Gary Cohn blamed the reduction in trading on calm markets and the Fed’s efforts to hold down interest rates.

Falling Volatility

Volatility on the MSCI All-Country World Index, which tracks stocks in both developed and emerging markets, dropped to 5.33 on May 28, its lowest level since 1996, according to 30-day historical data compiled by Bloomberg. The Chicago Board Options Exchange’s Volatility Index, known as the VIX, closed below 12 for the five previous days, the longest streak since 2007. The measure has a five-year average of 19.9.

“What drives activity in our business is volatility,” Cohn said in New York on May 28. “If markets never move or don’t move, our clients really don’t need to transact.”

Citigroup Inc. Chief Financial Officer John Gerspach said last week that second-quarter trading revenue could fall as much as 25 percent from year-earlier levels, and JPMorgan Chase & Co. estimated a 20 percent drop.

John Traynor, chief investment officer of People’s United Bank Wealth Management in Bridgeport, Connecticut, finds improving economic growth and earnings more important than volume. His firm oversees $5.2 billion.

Read more:

http://thecrux.com/stocks-are-hitting-new-highs-again-but-this-could-be-a-huge-red-flag/

http://washpost.bloomberg.com/Story?docId=1376-N6AEUB6VDKI201-6GGLKOG4SIVMK4MN46HAPGTVLM

 

During the first quarter of 2014, earnings by major U.S. retailers missed estimates by the biggest margin in 13 years. The “retail apocalypse” continues to escalate, and the biggest reason for this is the fact that middle class consumers in the U.S. are tapped out. And this is not just happening to a few retailers – this is something that is happening across the board. The following is a summary of how major U.S. retailers performed in the first quarter of 2014 that was put together by Jim Quinn…

Wal-Mart Profit Plunges By $220 Million as US Store Traffic Declines by 1.4%

Target Profit Plunges by $80 Million, 16% Lower Than 2013, as Store Traffic Declines by 2.3%

Sears Loses $358 Million in First Quarter as Comparable Store Sales at Sears Plunge by 7.8% and Sales at Kmart Plunge by 5.1%

JC Penney Thrilled With Loss of Only $358 Million For the Quarter

Kohl’s Operating Income Plunges by 17% as Comparable Sales Decline by 3.4%

Costco Profit Declines by $84 Million as Comp Store Sales Only Increase by 2%

Staples Profit Plunges by 44% as Sales Collapse and Closing Hundreds of Stores

Gap Income Drops 22% as Same Store Sales Fall

American Eagle Profits Tumble 86%, Will Close 150 Stores

Aeropostale Losses $77 Million as Sales Collapse by 12%

Best Buy Sales Decline by $300 Million as Margins Decline and Comparable Store Sales Decline by 1.3%

Macy’s Profit Flat as Comparable Store Sales decline by 1.4%

Dollar General Profit Plummets by 40% as Comp Store Sales Decline by 3.8%

Urban Outfitters Earnings Collapse by 20% as Sales Stagnate

McDonalds Earnings Fall by $66 Million as US Comp Sales Fall by 1.7%

Darden Profit Collapses by 30% as Same Restaurant Sales Plunge by 5.6% and Company Selling Red Lobster

TJX Misses Earnings Expectations as Sales & Earnings Flat

Dick’s Misses Earnings Expectations as Golf Store Sales Plummet

Home Depot Misses Earnings Expectations as Customer Traffic Only Rises by 2.2%

Lowes Misses Earnings Expectations as Customer Traffic was Flat

That is quite a startling list.

http://theeconomiccollapseblog.com/archives/has-the-next-recession-already-begun-for-americas-middle-class
Read more at http://investmentwatchblog.com/two-thirds-of-global-pmis-decline-in-may-velocity-of-money-reaches-all-time-low-crash-dead-ahead/#4K6eji1YKsLofT0o.99

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