Market choked yesterday on stimulation package pork

Futures for the Dow Jones Industrial Average, the S&P 500 and the NASDAQ were mixed, pointing to an uncertain start on Wall Street today. Asian markets were up .2$ to 2.8% with the exception of Japan which was down 3.1% on bad economic news. European markets are down about 1% reacting to growing concern about the absence of former American checks and balances and the proliferation in the news of overt political dishonesty and government pork bills.

Inflation and interest rates are set to rise this decade as it did in the 1970s. China so far has bought more than $1 trillion in American treasury debt, but Beijing is seeking to pay for its own $600 billion economic stimulus package as the Chinese tax revenue falls, exports fall, and their economy slows. Beijing is starting to keep its money at home. Chinese bankers are being instructed to lend more to local governments to allow them to build new roads and other projects as part of their stimulus program. However the US bailout apparently will be funded by printing money not by borrowing. That will set America up for a round of inflation that we have not seen since Jimmy Carter. Jimmy Carter and Jane Fonda were credited with scaring young people into thinking nuclear power was too dangerous to exploit. That gave Europe a forty year head start building a safe alternative 1000 year supply of alternative energy.

The new administration and their fawning Pravda type government subsidized media adulation society continue to distort facts to make things appear worse than they are and thus lower expectations of the new administration. When they want bad news they quote raw data that is not adjusted for population growth or seasonal factors. For instance industrial production always peaks in the fall in preparation for the holidays and shuts down in December. Employment peaks in December and declines in January. Therefore they should be adjusted to remove the seasonal decline or else it miss-informs the American public and presents a false conclusion this month that the economy has tanked even if nothing has changed from last year. That makes Bush look worse and lowers expectations for Obama’s performance. For maximum distortion bad news is now quoted in raw numbers and good news uses data corrected to remove any positive distortion. Later when they want to distort the facts to make Obama look successful they, like Pravda, will remove reverse the process.

The proposed bailout bill gives hundreds of $millions to public radio, public TV and to performers thereby rewarding all who have fawned and gushed over the president.. Freedom of the press and free speech were once needed to protect the media when they protected the American people by reporting government abuse. But now that they are a government propaganda machine they use their freedom to attack dissenters instead. The American people can see that this administration and their socialist leaning propaganda machine have been attacking dissident radio and TV hosts and an American reaction to this new political machine is growing.

Yesterday President Obama attacked Wall Street’s obscene bonuses when quiet investigation and recovery procedures would actually help put an end to them. Direct attacks do not correct the abuse but it tells Wall Street that they and American Shareholders fall very low in the opinion of socialists. Corruption and tax cheating spreads insidiously when elected officials say everybody does it and it is just the way to succeed in what you do. Obama indignation does not stop corruption, we need the FBI involved. When socialists nationalize… the shareholders lose and industry management positions are given as payoffs to the political supporters the same way they hand out ambassadorships to the biggest contributors.

Yesterday’s stock market decline accelerated when President Obama criticized greedy executives after giving a tax cheat a cabinet position and just as corrupt Illinois governor Blagojevich defended himself saying his $100,000 fee for supporting gambling legislation was the way things get done in American politics.

Still the American economic system shows its strength and resiliency as Americans consider the facts and begin to think about booting the corrupt self serving political machines out in two years. We remain optimistic that the market will recover and with it Americans will recover their savings plan loses.