Divisive and opaque, Obama administration thinks they can get away with extortion of America's productive people to pay for socialism.

Divisive and opaque, Obama administration thinks they can get away with extortion of America's productive people to pay for socialism.

Hitler and Stalin succeeded by absolute power, absolute force, and total fear. Socialists can only succeed in proportion to their violence. But socialism runs a natural course and always ends up with the socialist dictator dead and his followers on trial for war crimes against humanity. The slow method of bleeding a nation to death is the alternative and is the primary method of fallen empires such as Roman and Spainish.

But world socialist dictators make the mistake of thinking America is just another empire undergoing the decay of socialism similar to Britain. America is no empire of powerful political government diplomats who have connections that make them look superior. Americans despise other Americans who rise not by their own intellectual achievement but as ignorant sycophants with attitudes of superiority. Americans see Obama, as he is, a well spoken but ignorant leftist who does not understand American history much less the American people. Americans are also beginning to see Obama as too stupid to realize that the majority of Americans now see him to be a wanna-be banana republic dictator. Obama will not accept No, No, No from the American people because he is an ignorant, lying fool who fooled a lot of Americans into thinking he was not a Reverend Wright embodiment of the hateful loony left. Americans find hard to believe such loony left hatred could even exist in America.

How is it that America is the place most people in the world emigrate to, the place where African and Latino minorities have the greatest opportunities to succeed, and the place where one has the best doctors and medical research and development? How can it be that Americans have chosen a black president who hid the fact that he hates American free enterprise and he wants to install socialized medicine and big unions and insipid superior minded government Czars like they do in Obama's home town banana republics of Nigeria and Indonesia?


World Outlook
Obama's spiritual advisor and buddy, Chavez, just yesterday arrested the last owner of a Venezuela television network who still dared to criticize Chavez.

Socialists are fools who think businessmen and entrepreneurs will step up to the plate, believe, and volunteer to support unworkable loony left concepts like India's power from cow dung, and all the other left ideas that have been shown over and over again to be plain stupid. The real answer to America's energy needs is nuclear but the loony leftists are too stupid to figure that out. Lately the Obama leftists are concerned that long term interest rates are going up and up and are rapidly increasing the debt burden from the trillions of dollars the left is wasting on government political hack jobs and union job creation. Now new useful jobs have been created. Taking over the health care industry will put millions more incompetent people into government jobs that working people have to deal with. Working-thinking Americans know that means we will have a nightmare future health care system similar to Nigeria's and Indonesia's, the two that Obama thinks are better than what we have today. They are the only socialized health care systems Obama knows. Obama's waste of American hard-earned money is making people shout, "Kill the bill." In the mean time smart people are shunning American long-term treasuries.

The Euro continues to decline against the dollar. Since China is now linked to a basket of currencies that makes the dollar stronger against the Juan. Germany is the only nation in Europe able to exert some self-control when it comes to the big unions. Most union people in Greece on the other hand have no pride in their work. That may reflect the fact that Germany has a two track educational system that trains people well in trade skills that results in Germany having competent workers who have pride in workmanship and too much dignity to try to bankrupt their country with socialist demands for something for nothing.


This Week of Market Reports:
Treasury bill auctions are feeling the pressure of China's absence at auctions. That means the treasury will need to actually inflate the US currency.
Existing Home Sales fell 0.7% from a year ago. That looks like a statistical blip not a trend.

Durable Goods Orders rose in February for a third month, while inventories and backlogs climbed by the most in more than a year indicating the economy had perhaps finished with its first dip. New Home Sales fell to the lowest level (308,000 annually) since this statistic has been recorded. This is after the previous month was corrected downward as well from 315 to 309 adding 6000 to the current figure.

Yesterday
The yield on 10-year Treasuries, which determines borrowing costs for homeowners, companies and other governments around the world, climbed 0.03 percentage point to 3.88 percent after jumping 0.17 point Tuesday. The yield touched the highest level since June when it reached 4 percent. This could be the end of the FED's ability to keep interest rates low because such a spread stimulates inflation.
Unemployment Claims dropped to 442K from 456k last week.


Friday, March 26
Q4 GDP revision
Consumer Sentiment


Market Outlook March 26
The market sold off yesterday when long term Treasury auctions continued to be weak indicating that China and Japan are too smart to fund Obama's socialism and Obama's extravagant wasteful deficit spending. Obama's nationalization program that can only end with a world wide Great Depression like FDR caused when he was enamored with the Russian Revolution.

The storm is approaching. As we said we have been selling heavily into this rally which shows signs of ending soon. Our only major holding now is precious metals that are up over 15% from where we bought in. Most of the shakiest economies of the world sold their gold at the lowest prices in the last 20 years. Even small purchases by China and India now have a dramatic effect on gold and silver. We expect gold to reach $1500/oz this year.

If you look back you will see we were buying when people had sold off the market and we are selling near the peak now. Our private sell signal corrects the market price data with volume data to make the data speak the truth. So we can already see the head and shoulder sell signal is forming even though the current markets are at new highs for 2010. In fact the highs would need to be 3% higher for them to be higher after being corrected for poorer volume on advances than on declines. If the head and shoulders is confirmed we are looking at a possible two or three market legs down starting soon.

Obama and the democrat-socialists are setting the stage for short sellers of every breed to sweep in soon and attack American markets and currencies. The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime.

World Markets
Asian markets were up over night; Shanghai up 1.3%, Hong Kong up 1.3%, India up 0.5%, and Japan up 1.6%.

European markets are currently down in the range from -0.2% to -0.5 % this morning about half way through their day.

Today US pre-market futures are up in a range 0.3% to 0.4% at 8:30 AM EST.

We have noticed that the greatest impediment to stock market profits is a portfolio under $100,000. Beyond $100,000 the investor costs go down and diversification begins to work. Below $6000 it is almost impossible for an investor to make money other than in an index fund (at best) and that has performed close to a net zero for the last ten years (even ignoring trading commissions).