Socialist dictators historically try to destroy their opponents. Opponent is another word for competition. Socialists do not believe in competition because that works in favor of smart competent people. The Obama administration hates all competition. They appointed a recent college graduate and an old-timer from the AT&T telephone company to run GM to be sure their socialist-democrat union voters get the taxpayer bailout so the union continues to vote for socialism in the future. That is called the redistribution of wealth from the competent workers, and competitive businessmen and entrepreneurs to the folks who socialists need to vote and wave red flags at demonstrations. Also those same socialist political hacks show up at the rallies of their opponents to shout racist remarks so that GE/MSNBC/Pravda can claim the American opponents of national socialism are racist. Lenin and Hitler were experts at those tactics. Mao and Stalin were more direct and just shot their opponents in the head.
GE of the famous GE/MSNBC/Pravda socialist media machine seems to be in line now for $Billions for development of US nuclear alternative energy six months after Obama promised the environmentalists he would never allow nuclear power if they voted for him. Obama will start construction of seven new nuclear plants now. The current executives of GE are well known for their general incompetence. Perhaps the socialists plan to kill all nuclear plant construction with incompetent management wasting taxpayer money on incompetently built/dangerous socialist Chernobyl type facilities. The management of GE/MSNBC/Pravda perhaps would be the best choice the socialists could come up with for another major accident. After all, nuclear energy is the only sufficient source of CO2 free energy that could power the world for 1000 more years until fusion technology is available.
Market forces June 19
Political instability causes an increasing risk to free markets.
China is obviously desperate and using N. Korea as a diversion to unsettle world free capitalist nations. Russia is also now starting to get into this game with N. Korea. Both China and Russia are now paper dragons and their lunatic N. Korean partner gives them a way to threaten the west and possibly avoid retaliation. Clearly China and Russia are doing the best they can to create political/economic uncertainty and destabilize the free world. A major event such as N. Korea detonating a nuclear bomb in the midst of the US Pacific Fleet would probably qualify as their promised 1000 fold retaliation for the US boarding one N. Korean ship carrying such a weapon. Such a weapon could also be brought into the San Francisco harbor. This is the level of insanity the socialists are historically noted for: Stalin, Hitler, Mao, Breshnev, Mugabe, and etc.
Today the Wall Street Journal shows two Latvian socialists attempting to strange each other because they have to cut pensions 10%. In the USA today the corrupt socialists will allow a teacher to retire "disabled" on full pension after being kicked in the knee by a 5th grade student. We all know "disabled" people who ski while we work to pay taxes to support them. But the worst thing in America today are Obama's ACORN thugs who get free union/communist paid bus rides to protest on your lawn and threaten your family if you earn more than they want you to. President Obama has many millions of taxpayer "stimulus funds" to stimulate ACORN to intimidate vote checkers who check for vote fraud and federal authorities who are too active tracking down illegal immigrants.
Market Outlook
The recent market gains were on incredibly light volume. After declining on Wednesday on average volume the markets rose on Thursday with an 18% decline in volume. That is a sign of market weakness and market instability. The market is unstable because even a low volume of selling could now drive the market much lower and very rapidly.
America and the world are becoming politically and economically unstable under President Obama. The communists perceive Obama as weak and apologetic. Israel and many Americans perceive him as anti-Semitic and willing to see Israel cease to exist. He and Senator Dodd first raised the fear of a Great Depression and Dodd himself caused the run on the first American bank by revealing confidential Senate Banking Committee information. Then once elected Obama tried to minimize the fears of a depression that he himself started and he socialized several banks and the auto industry where he installed democrat-socialist management. President Obama apparently owns the management of GE, and MSNBC is now virtually the American version of the Russian Pravda propaganda machine. The worst is yet to come when the $trillions being handed out to corrupt political hacks and Obama friendly corporations destroy the American economy and throw America into potential chaos.
We now have zero confidence in Red China, India, or other emerging socialist markets. The risk of enormous investment losses in emerging economies is now very high similar to the situation in Russia before the collapse of their market and currency. The risk of a panic and collapse in western stock markets being orchestrated by Red China through N. Korea is now very high. This turmoil makes the dollar stronger and that makes the holders of US debt wealthier but hurts US exports. The dollar is strong in spite of the fastest inflation of our money supply in the history of the world because most Asian and European countries (indeed the Middle East as well) are mere economic shells compared to the economy of America. They prosper by selling to American consumers and the American balance of trade has already dropped sharply by more than 50%.
See: http://www.martincapital.com/chart-pgs/Pg_baltr.htm
Last night most Asian markets were up, China up 0.9%, S. Korea up 0.6%, Japan up 0.9%, and Hong Kong up 0.8%.
Most European markets after being flat yesterday are up today in a range of 0.1% to 1.6% half way through their session.
US futures are up about 0.5% today. We are on the sidelines now. It would be better to buy real estate now than to buy stocks at current prices based on their imaginary potential future earnings. Based on real earnings the S&P PE ratio is at an historic high and even a 50% decline is still possible.
Over the next three months we expect to see a stock market sell-off of about 27% as investors realize this Obama crisis of socialism will get deeper and will last at least another one or two years. China has nothing to fear with America owing them $800 billion. America has several $Trillion invested in China. Thus if Communist China launches the new five year plan and confiscates foreign investments, then the resulting world wide deflation would protect China's wealth and China would indeed appear the wisest leader of the world and maintain their domestic tranquility. China does not want its population thinking about the massive drop in national income as China's exports continue to plummet.
President Obama has shown Americans just how easy it is to nationalize an industry. First give them some government funds, then rule them like a dictator, then bankrupt them, and finally take 55% ownership for the USA. Then you can appoint you own socialist political hacks as the managers.
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