The FDIC is insolvent as banks fail… but now Obama just prints funny money.

Obama goes around the world apologizing to Marxists for USA human rights policies of the past. His aides suggest the USA can learn from Fidel Castro’s totalitarian state.

The clear and present economic danger is no longer just an Obama created “Great Depression.” It is much worse. It is the loss of the American work ethic and American liberty. By giving illegals citizenship and expanding welfare to those who prefer not to have to work, Obama gains a Socialist electoral majority and disenfranchises working Americans. The American worker is now a cash cow to be milked for socialist expansion.


Market forces

Rates on three-month bills turned negative in December for the first time since the government began selling them in 1929 as investors panicked worrying about an Obama Great Depression.

Demand for bills is rising again because the Federal Reserve buys Treasuries to drive down borrowing costs in a policy of so-called quantitative easing. China, the largest U.S. creditor, with $744 billion of debt, has questioned the practice. Leaders of China are voicing concern about their investments as Fed and Treasury officials pledged $12.8 trillion, (90 percent of last year’s USA gross domestic product), to pull off the largest USA socialist coup since FDR. That amounts to the FED taking on over $100,000 additional debt on every American family household.

China’s exports to the U.S. jumped 40 percent in March. People’s Bank of China Governor Zhou Xiaochuan called for the establishment of a non USA exchange currency last month after Chinese Premier Wen Jiabao said he’s “worried” a weaker U.S. dollar may hurt China’s investments. Inflation and a depreciating dollar would erode the value of U.S. holdings owned by international investors. George Soros funded the Obama campaign with this goal of destroying the US currency so that his anti-American bets will make him the richest man in the world.

Investors now realize that the “Great Depression” was a socialist election scare tactic last year. What investors are slow to realize is that Marxists always create financial crises to justify big government conversion over to totalitarianism. Just as FDR created the last Great Depression in his attempt to crate a socialist state, Obama hopes his policies will also create a Great Depression to succeed where FDR failed. So yes, Bush did not start a Great Depression. The next Great Depression is yet to happen under Obama.

Market Outlook

All the signs are saying the stock market is about to collapse and it is time to prepare to cherry pick into a long market position as the market pulls back in the next correction. But be very careful. This Jim Cramer “bull market” is a sucker rally for wannabe rich leftists who actually believe the stimulation package has already been spent and is working. It could be an ugly decline when it ends. If it declines more than 10% it could then plummet to a new low.

Asian shares were up slightly last night with Shanghai (China) up 2.4%, India down 0.4%, Japan up 0.2% and Hong Kong up 1%.

European markets are currently down in the range of -1.2% to -2.4%, mid way through their day today.

The U.S. dollar is down sharply. US futures indicate the American markets will start the day down sharply. All the American equities markets remain extremely over bought. As the markets decline further they will present select opportunities to astute investors seeking value by catching individual stocks that are down in higher value ranges.