“Group think” socialist media continues to accentuate the negative.

Most Asian markets closed down over 1.5% on reports of Japan’s poorer earnings but China was up over 1% last night. European markets are down an average of 2% this morning. American market futures are pointing to a lower start at the present moment.

The media and the new administration continue to grossly exaggerate the current recession which looks no worse than the one President Regan encountered when he took office and ended Jimmy Carter’s inflation bubble.

For instance the big fuss the media made last week was over the 0.9% decrease in the GNP (gross national product) in the last quarter of last year. Yes, it decreased only 0.9% that quarter not 3.6% but the media miss-reported it. The media reported that the GNP was down 3.6% on an annual basis (what it would have been if it declined at a 0.9% quarterly rate for an entire year)! At the same time the government reported they only expected one more down quarter and then two quarters of zero growth. So in reality the decline for this entire one year recession (four quarters) will be on the order of just 2%.

The media reported the GDP as though they were expecting a 5.4% decline on top of their grossly exaggerated 3.6% decline thus alarming the average investor who does not understand that the Pravda USA machine is trying to lower expectations to make the current administration’s big government pork bill look more appealing. Statistics do not lie when they are used properly but the socialist "group think" media lie extensively by reporting the statistics incorrectly.

Also Pravda USA is raising the “Fairness Doctrine” again saying that they want Radio stations that broadcast conservative talk show hosts to provide equal time for the socialist media’s talking heads. The socialists already completely control the National Public Radio and they don’t allow conservatives to have regular shows there. They will need to first appoint a few more socialists to the Supreme Court since the Supreme Court turned down their big brother law the last time they tried to ban dissidents in America.

We believe we have been in a secular bear market since the Clinton bubble burst in 2000 and we have been fighting it with deficit spending ever since. The real problem will be at the ending of this period with stagflation (the sum of the inflation rate and the unemployment rate). Unemployment will increase while inflation raises its ugly head. While CD’s rose to 16% interest during the Carter stagflation secular bear market of the 1970s, people on fixed income lost most of their pensions due to the inflation. Then President Regan popped that inflation bubble and caused the short recession that ended the secular bear market of the 1970s. We appear to be seeing a repeat performance now with President Obama filling in for President Carter and setting the USA up for stagflation again.

The stock market represents such a bargain at current prices that it is ready to surge with even the slightest increase in investor interest. The declines have been on very low volume and just small increases in buying pressure have resulted in enormous rallies The media has distorted economic news so negatively these past few weeks that the market is overdue for a rally. Both the Asian markets and the USA markets appear to have bottomed and are ready to surge:

http://finance.yahoo.com/q/ta?s=000001.SS&t=3m&l=on&z=m&q=l&p=p,m20&a=m26-12-9&c=

http://finance.yahoo.com/q/ta?s=QQQQ&t=1y&l=on&z=m&q=l&p=p,m20,e100&a=m26-12-9&c=