In a free country a free thinker is not shouted down and mocked by NBC/GE/Pravda

Market forces May 15,
Longtime technical analyst Robert Prechter, who as we did, forecast the 1987 stock market crash, predicted this week that US equities may plunge to half their lows hit in March as a deflationary depression bites. He says Oil and US Treasury bonds are also locked in long term bear markets. "It's not the start of a new bull market," said Prechter, chief executive at his research company Elliott Wave International. "Our models are (showing) right now that it is a much bigger bear market than most people realize," he told Reuters in a wide-ranging interview. " He added, "I think the next leg down will be at least as severe if not more severe than what we just experienced. So you want to stay on the side of safety."

Right now the forces are deflationary because no matter how fast we increase our money supply, when due to enormouse personal debt, hardly anyone is spending the money the velocity of the money is zero. And when the velocity is zero the money in circulation is zero.

The seriousness of the contraction is due to Obama's advocacy of socialism. FDR had the same problem because in the 1920s and 1930's socialism and communism were all the rage around Europe and on the American college campuses. But socialism only works until they run out of other people's money. Every country that has had socialism for more than 40 years goes down hill and soon cannot even feed itself much less advance technologically. That is why America has been the technological engine of the world. The technological center of the world moved from Paris to London and then to Berlin before finally moving to New York, Boston, silicon valley, and now toward the more capitalist American states in the South. Harvard, the bastion of communism has long lost its way and its greatest present namesake is Edward Kennedy.

The Brain drain:
When most of the world went socialist or even communist in the last century, America benefited from the most enormous brain drain the world had ever seen. The best and brightest people in socialist countries were being taxed, shouted down, harassed, robbed, beaten, and killed because they had minds of their own, money, and an education. In Cambodia the communists killed you if you wore glasses because they assumed you were educated and corrupted by knowledge of the evil of "capitalism". And so the best minds came to America because America was free and productive people could freely think, speak, and prosper.

Obama's socialism brings an end to that era of American leadership in the world and he is going around the world apologizing for America's past successes. Productive people do not allow themselves to be shouted down and then enslaved by socialists like Obama. America is no longer a free country. In America today NBC/GE/Pravda mocks people who are free thinkers. In America today free thinkers are shouted down on college campuses.

Atlas is beginning to shrug now in America and to throw off the weight of the world. If you do not know what that means then read, "Atlas Shrugged" by Ayn Rand. Greenspan was America's last Objectivist FED chairman. The productive people of the world will not support or allow themselves to be enslaved by communists or socialists. Therefore Obama's socialism will likely cause a German Weimar Republic type economic collapse in America like when the socialist took Berlin and the technological center of the world fled from Berlin in Europe to American freedom. FDR fortunately abandoned socialism and opposed and cracked down on the Nationalist Socialists and the Communists.

In "Atlas Shrugged" the final brain drain is the retirement from America of productive people to the countryside and their refusal to participate further in any economy because of the persecution of productive free thinking people in all the socialist states of the world. Ayn Rand foresaw this more than fifty years ago.


Market Outlook

We are on the market sidelines until the market re-tests its lows.

Last night's Asian results were positive. China is up 0.2%, Hong Kong up 1.5%, India up 2.5%, and Japan's market is up 1.9%.

European markets are down in the range of -0.3% to -1% mid way through their day.

US futures indicate the markets will start about 0.5%lower today.

Obama's plans to quickly socialized medicine this year will be so disruptive that it will likely have the effect of bankrupting most government programs and throwing America into a deep depression. The only hope now is that in 2010 Americans will vote out all the members of Congress advocating socialism.