Socialism is sustained by giving a majority of voters free passes called entitlements to live off the work of others.

You and all the other fools who work, invent and create are like the educated Greek slaves who enabled the Roman Empire to run. There are always many entitlements of the majority. First there are always the corrupt and decadent government comprised of the chief of state and a senate. Then there are the government workers where the motto is, "It is not what you know not who you know that counts."

The unions have the political entailment to select the arbitrators who determine the limits to which State and City workers can bleed state and city taxpayers. Those state and city entitlements are what give us a look at the future of America under socialism because the leftists tend to be concentrated in major cities and states like NYC and California which were once areas of capital formation. They are attracted to wealth just like any thief is. Once in the late 1800's Rhode Island's city of Newport was the wealthiest city because it was a beautiful coastline where the wealthy vacationed. The leftists took over the city and state and all the wealthy gave up and moved out. Now Rhode Island ranks with the poorest in wealth and education in the USA. Once America attracted the ambitious and idealistic poor of the old socialist European countries who were brave enough to be pioneers in a new world and make it on their own. Today the leftists have opened the flood gates from places where people reject the old American work ethic, do not seek to educate themselves, and refuse to learn the language Americans have spoken since the Pilgrims. Americans are becoming the servants of a majority of voters who are leftist socialists and for the most part pay little or no taxes because they feel entitled to homes and a life style that true Americans like you must support as their indentured servants (like the educated Greek slaves of old).

It is quite possible to educate this mass of indolent leftists but not when they are entitled to everything based on the laws made by leftists and socialists. We must have the American laws that that the Pilgrims had. The pilgrims tried a Christian style of socialism where everyone was supposed to work according to their ability and could share in the harvest of the community. Under Pilgrim socialism many shirked their work claiming age or infirmities made work too inhumane for them. The next season the American Pilgrims switched from socialism to free enterprise and the community law became unto each according to his works or as the charity of others provided. The socialist's entitlement to charity was gone and the Pilgrims survived and Americans used their surplus wealth to be the most charitable nation in the world.

The left spreads lies and says America is not charitable. But all we need to do is look at America before the leftist socialists began taking power and you see Americans were much more charitable. After WWI America sunk $billions into Western Europe while the Communists stripped East Germany of its machinery and kidnapped German scientists as a slave source of manpower to develop jets, rockets, and nuclear weapons under communists who took all the credit. Eventually Eastern Europe was starving and America was shipping them free grain to eat. But the Communists re-bagged the wheat and then demanded that the bags not be labeled as coming from America. Leftists and socialists are the world's best liars because no one would listen to them if they knew the truth. Today they want everyone to say nice things about them and the Moslem terrorists who want to kill all Jews and Americans. They hate the American Tea Party movement and call them haters because there just are no nice words to describe leftists and socialists if you wish to speak truthfully.

The whole reason for politically correct speech is to suppress the truth about thieving socialist Ponzi schemers and Treasury Secretaries, corrupt politicians, murdering anti American Moslems, lazy entitled government workers and unions, imbecilic leftist congressmen who think Guam will tip over and sink from having too many people, and other leftist activities that pass all previous limits on acceptable societal stupidity.


World Outlook
A 20% improvement in sales after an 80% drop still leaves a company 76% lower this year. But the market prices the stocks much higher because the growth rate makes the stocks PEG seem like a great buy. It can be a very slow growth company that looks good only because the investors are short sighted and believe the stock hype Jim Cramer and others give them. The Baltic Dry index measures the health of world trade. It has shown a serious decline in the last few months and that no doubt is why Jim Cramer has been ignoring it of late. It means world trade is slowing,
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND

Economic Calendar
Finally American jobs are being created faster than they are being lost. See:
http://www.martincapital.com/chart-pgs/Pg_jobs.htm

However, below that chart is another chart that shows the high unemployment rate. What is not shown is that there are a greater percentage of Americans who have been unemployed now for more than a year than in any period since the Great Depression. That block of unemployed Americans will take a long time to re-absorb into the economy.
ISM non manufacturing index rose to 55.4% from 53% last month indicating services are expanding at an increased pace.
US Treasury prices slid on Monday with benchmark yields touching 4 percent for the first time in 10 months as inflation is anticipated. Inflation is better now than deflation.
Pending home sales- the National Association of Realtors said Monday its seasonally adjusted index of sales agreements rose 8.2 percent from January to a February reading of 97.6. January's reading was revised slightly downward to 90.2 to make the current month look better. This is still a good sign.
FOMC minutes were once again positive. In light of improved functioning of financial markets, the Federal Reserve has been closing the special liquidity facilities that it created to support markets during the liquidity meltdown. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close June 30.
Markets are skeptical over Greece's ability to repay bonds they continue to sell more of to pay off debt and go ever deeper into debt as welfare recipients and government workers demand a free lunch and put it on the tab of private workers.
Buyers have returned in force to Treasury 10-yr note auction. The $21 billion auction stopped out at 3.900 percent just under recent highs of 4%. Retail demand was very strong with direct and indirect bidders taking down 59 percent of the auction vs. an average of 51 percent. The continuing trouble in socialist Greece has increased the value of the dollar and is giving a boost to U.S. Treasuries. Treasury prices are extending gains.

Yesterday
Unemployment claims: There were 2.7 million job openings February 2010. The job-opening rate was little changed over the month at 2.1 percent. The hires rate (3.1 percent) and the separations rate (3.1 percent) were also little changed in February.
Bank of England rate has not been increased.
The EURO experienced moderate bounces in positive price volatility following news from European Central Bank (ECB) governor Jean-Claude Trichet. In an anticipated move, the ECB decided to hold interest rates steady while declaring growing stability for Greece. Trichet declared that there was little fear of a sovereign default by Greece in the future and the impact was gripped by short-term bursts in EUR growth. Currently the insurance odds indicate they assess a 4% risk of Greek bond default within five years. Following the announcement by Trichet, the EUR exited its recent weeklong downtrend against the USD and bounced back towards 1.3355 by the end of yesterday's trading. Against the GBP the EUR witnessed two sharp spikes after the announcement by the ECB, but was unable to sustain its growth and fell back into its downtrend, sending a wave of chatter among analysts that a similar fate was due for the EURO/USD in today's trading.
Treasury 30-Year bonds go to 4.770% yield pushing. 30-Year Mortgage Rates to Highest Level in Eight Months. Freddie Mac released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage averaged 5.21 percent with an average 0.6 point for the week ending April 8, 2010, up from last week when it averaged 5.08 percent. This is the highest the 30-year mortgage has been since the week ending August 13, 2009 when it averaged 5.29 percent.
Gold prices rose on signs of inflation in home prices and in higher interest rates that increase the cost of producing everything especially in a high debt society.

Friday, April 9:
Wholesale Trade Report


Market Outlook April 9
The market closed up on lower volume again confirming the topping of the American stock markets. We do not expect more than a 10% decline in this first round but it is likely to cascade downward until the socialists in Congress are thrown out of office so that spending on unions and state, city, and federal loafing lifers can be cut.

Obama and the democrat-socialists have set the stage for short sellers of every breed to sweep in and attack American markets. It is very hazardous right now because individual popular stocks like PALM show just how badly an investor in Jim Cramer's favorite growth sector can be savaged. Other stocks such as Boom are being savaged internally with management literally buying Boom stock at 0$ per share and selling it to hide mushrooming Administrative salary increases by diluting the value of the stock. The management of BOOM is milking that company dry.

The fact that George Soros funded the Obama campaign should have been enough cause for every American to vote against the Obama regime. The new chairman of the Republican Nat. Comm. Is another big spender and is destroying the Republicans from the inside as contributors are turned off by GOP big spending on nude bar scenes.

World Markets
Asian markets were up over night; Shanghai up 0.9%, Hong Kong up 1.6%, India up 1.2%, and Japan up 0.3%.

European markets are currently up in the range from 0.7% to 1.3 % this morning about half way through their day.

Today US pre-market futures are up about 0.2% at 8 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).