GLOBAL STOCKS IN TROUBLE

Is Ezekiel 7:19 and James 5:1-3 here, time will tell??????????????!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

EZEKIEL 7:1919 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

And the result of the future stock market crash!!!!!!!!!!!!, The EU COMPUTER CHIP SYSTEM WILL COME INTO PLAY.!!!!!!!!

REVELATION 13:16-18
16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.

US dollar weakness likely to crash global stocks

The US dollar appears to be entering a long-awaited devaluation period to compensate for global imbalances. But this is also likely to spark a significant sell-off of US equities and bonds because many investors will not want to hold assets valued in a currency that is in decline. Monday, May 15 - 2006 at 09:35

Last Friday equity markets around the world saw one of their worst days for three years, and this may be just a taste of what is to come if the US dollar bears are proved right. Kuwait's 1% revaluation against the US dollar was insignificant in itself but a powerful warning about the sentiment of the market which has been impacted by a perceived end to interest rate tightening by the Federal Reserve. With interest rates apparently on hold, the US dollar is less attractive than other currencies such as the euro where interest rates look likely to go higher.

David Bloom, currency strategist at the world's second largest bank HSBC, says this switch is a 'regime change' and forecasts $1.40 to the euro over the next 12 months. His warning is that phase two of a US dollar decline will result is an equity sell-off and 'an increase in volatility and uncertainty across the board.

Complacency to end

Perhaps this change of pace should not come as such a shock. Equity markets have been remarkably benign for a long period, and a return to greater levels of volatility could be expected. Moreover, global stock markets have just posted a six-year high, and cyclical peaks are not normally long lasting. On the other hand, the weakness of the US dollar is benefiting
precious metal prices which rise in nominal terms to compensate for a weakening dollar, particularly in the case of gold which is a quasi-monetary instrument. So as the US dollar declines further the upward momentum seen in the gold price is likely to continue.

However, the sharpness of an equity sell-off and US dollar decline will determine what happens to precious metals next. If major investors all dump the US dollar and US bonds and equities at the same time then a financial crisis could push even more money into gold as a safe haven asset. But if this crisis deepened then investors might have to liquidate gold positions and gold shares to shore up their balance sheets.

Historical precedent

Many past periods of crisis on Wall Street have been precipitated by major shifts in the value of the US currency, a fact not ignored by the International Monetary Fund whose officials are concerned to ensure that US dollar weakness does not cause a full blown financial crisis. IMF officials are currently in emergency talks with governments and a US dollar support package
could emerge. The intelligent investor will not be too impressed by such developments and if holding long positions in US equities or bonds could well choose to use any period of stability underpinned by IMF intervention as a point to quietly leave these markets. For waiting around for a disaster to strike would not be a bright move.

Major quake rocks Pacific near Kermadec Islands Wellington, New Zealand-16 May 2006 02:44

A magnitude 7,4 earthquake struck in the Pacific Ocean, off the coast of the Kermadec Islands, at 10.39am GMT on Tuesday, the United States Geological Survey reported on its website. The quake -- which hit at a depth of 148km -- was located some 290km south, south-west of Raoul Island, in the Kermadec Islands chain. The Kermadecs, some 810km north-east of Auckland, are New Zealand's northernmost territory and one of the most active sites in the world for earthquakes caused by tectonic plate movement. Reports from Whakatane on the east coast of New Zealand said the quake rolled for 30 seconds, while a Wanganui resident on the west coast said the shaking lasted almost a minute. A Whakatane police officer said he was sitting on a roller chair talking to the police communications centre in Auckland when it struck. Things started moving and I thought this is a goodie, Sergeant Andrew O'Reilly said.

The Kermadec area has been experiencing up to 30 earthquakes a day since March 18 when a New Zealand conservation worker was killed in a volcanic eruption on volatile Raoul Island. The Pacific Tsunami Warning Centre said that "no destructive Pacific-wide tsunami threat exists based on historical earthquake and tsunami data", but cautioned that earthquakes of this
magnitude can sometimes spark local tsunamis. Authorities in the region should be aware of this possibility and take appropriate action," the tsunami centre said in its statement. -- AFP

AFX News Limited Forex - Dollar back in trouble as US data points to Fed pause in June, 05.16.2006, 12:10 PM

LONDON (AFX) - The dollar suffered a renewed bout of selling after relatively tame core US producer price data and another
soft housing report reinforced expectations that the US Federal Reserve will not raise the cost of borrowing in June. Though the Labor Department reported that higher energy costs pushed US producer prices up a higher-than-expected monthly 0.9 pct in April, the core reading, which excludes food and energy prices, came in below forecasts. It was up 0.1 pct for the second month running against expectations of a 0.2 pct rise.

Meanwhile, government figures showed that construction of new US homes fell back for the third month running in April. Starts fell 7.4 pct in April to a seasonally adjusted 1.85 mln annualised units, the lowest level since November 2004. It was the largest drop in more than a year and the last time there were three straight monthly declines in construction was the winter of 2003-2004. The decline in housing starts in April was larger than expected. Economists had forecast housing starts to remain basically flat at 1.97 mln units.

Following the data, the euro moved up to a high of 1.2870 usd and back toward the 1.2973 usd one-year high recorded yesterday. Meanwhile, the dollar fell below 110 yen and toward the 109.32 low recorded last September. 'The US PPI report indicates inflation remains contained (at least on the core basis), and the sharper than expected weakness in housing signals
fresh weakness is ahead for the dollar,' said Brian Dolan, head of currency research at Gain Capital. The slowing in the housing market that the Fed has anticipated is materialising and the benign inflation readings fit their outlook, both suggesting that no further Fed tightening is needed,' he added.

The minutes to the last meeting of the rate-setting Federal Open Market Committee indicated that the US rate outlook is very much data dependent. The US currency has fallen heavily over the past month amid growing concern about global economic imbalances, speculation that US interest rates are near a peak at 5.00 pct and signs of reserve diversification by world central
banks. Expectations of an imminent Fed pause contrast with predictions of tighter monetary policy from the European Central Bank, helping the euro rapidly surge up towards 1.30 usd.

'With the ECB talking up the possibility of a 50 basis point increment for the tightening cycle while the Fed advocates a pause, cyclical drivers point to euro strength,' said Mitul Kotecha, head of global FX strategy at CALYON. 'Additionally, with the growing focus on structural factors pointing to further downside for the dollar, we favour buying the euro...with a target
1.3245 usd and a stop at 1.2595 usd,' he added. Earlier, the euro suffered little damage from a disappointing business survey in Germany, the single currency zone's largest single economy.
The euro initially fell back below 1.28 usd after the ZEW institute said its main index on economic expectations fell by 12.7 points to a six-month low of +50.0 in May, as a result of the strong euro and sky-high oil prices. Analysts had been predicting only a modest fall to +60.0.

London 1450 GMT
London 1133 GMT
US dollar
yen 110.02 down from 110.31
sfr 1.2078 down from 1.2116
Euro usd 1.2852 up from 1.2814
stg 0.6815 up from 0.6813
yen 141.42 up from 141.35
sfr 1.5526 down from 1.5527
Sterling usd 1.8857 up from 1.8812
yen 207.52 up from 207.48
sfr 2.2778 down from 2.2790
Australian dollar usd 0.7672 up from 0.7618
stg 0.4068 up from 0.4051
yen 84.41 up from 84.03
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