The Obama government continues to produce corrupted economic data to hide its banana republic ineptness.

The Obama government continues to produce corrupted economic data to hide its banana republic ineptness.

Below you see the persistent corruption of economic data by first lying by reporting data optimistically and then adjusting the data towards the truth when nobody is looking so that the new data almost always shows an improvement in the economy.

The Obama administration has the lowest representation of intelligent private sector problem solvers in recent history. Now Obama wants to appoint Kagan, a person with no significant judicial experience, to the Supreme Court. All she is credited with is an ability to talk well without intelligent things to say similar to the way Obama talks. Obama says nothing but says it well. She is another banana republic socialist talker with no intelligent things being said or proposed. They are socialists not problem solvers such as good American leaders would be if they came from from the private sector. Kagan has always been and obviously still is being advanced just because she is a woman and a socialist not because she is competent. It has been pointed out that when the country was founded the entire court was composed of protestant men and now the leftist lunatic bigots have gotten the court down to one single protestant man. The leftist lunatics think that is an unbiased representation of America.

World Markets:
It is very likely that Chinese capitalism will fail this year as Russian capitalism failed in the last decade. However, they may become less ardent communists and more corrupt the way Russia is today with a much reduced growth rate but still much better than under communism. Housing prices in China are more distorted today than they were in Japan in 1989 just before the Japanese boom went bust. It appears the Chinese housing bubble will burst soon, perhaps this year but not until a recession begins and the Chinese experience rising unemployment as they had in 1997. When unemployment rises the housing bubble will burst and they will experience what Japan experienced since 1990 and America has experience since 2007.

In the past American free enterprise has always provided a stable currency and has always bailed out the world by advancing world wide technology faster than corrupt socialist fascists and Communists could destroy wealth. But with corrupt American socialists now carving up and consuming American free enterprise that era is coming to an end. Americans must rise up in November and throw out the corrupt socialists before it is too late and they create a permanent economic underclass that votes 90% or higher for a corrupt socialist tyranny to take care of them cradle to grave.

Economic Calendar
This week
Lower ratings and ad revenues, and higher costs at Walt Disney ABC television network, flat operating income at $1.3 billion, and decreased primetime and news ad revenues were reported optimistically with much fanfare by GE/MSNBC/Pravda.

View three years of the following. Do not be fooled by the three or six months Jim Cramer shows to deceive his viewers.
http://www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND

The British central bank left its benchmark interest rate at 0.5 percent, where it has been since March 2009.

Inventories at U.S. wholesalers rose for a third month in March, but sales climbed even more, a signal companies will need to step up orders to try to meet demand. The amount of goods on hand compared to sales dropped to the lowest level on record, indicating factories will need to keep increasing production.

The trade deficit in the U.S. widened in March to the highest level in more than a year. The trade deficit stands to get much worse as the world debt crisis pushes the dollar up against the euro and obviates the need for China to revalue higher. Ultimately Obama's policy will shift the crisis to America and the American currency will collapse. But the American debt crisis will not begin until Obama tax and spending kicks into high gear next year and crushes the American recovery.

Yesterday
Unemployment initial claims were once again manipulated by the Obama administration. They have about 90% liars rating. The last time they were at 444,000 but that was revised upward by 4,000 so that this time they could cut initial claims from 448,000 down to 444,000. So the truth is initial claims increased 4000 or about 1% from 444K to 448K but Obama lied and increased the last number by 4K while nobody was looking so he could subtract 4K for this announcement. They lied by 2% in order to turn a 1% increase in new unemployment claims into a manufactured lying 1% decrease.

Obama lied on continuing claims as well. The last report said 4,595,000 people were collecting unemployment. Later when no one was looking they increased that number to 4,615,000 or by 20,000 so that they could falsely claim a reduction of 20,000 from the truth. Claims jumped to 4,627,000 from 4,595,000 even after subtracting the 20,000 or over 1%. That is why unemployment is now over 10% even though they lied and said things improved. Many people are being kicked off of unemployment now.
Corporate earnings reports are distorted to look exceptional because after earnings dropped 99% last year (2009) to 1% of 2008 earnings all they have to do is grow to 2% of 2008's earnings and they can report that earnings are up 100% from last year (2009). But anyone with any sense knows that is the same as saying 2010 earnings are still down 98% from 2008. So the 100% improvement this year still stinks because we need a 9900% improvement just to get to a pre-Obama economy. Jim Cramer apparently has not figured that out yet. Or else he is one the folks that sell their clients a bill of goods so they can turn a profit. Does Jim pump his held stocks and then dumps them later?

Remember, until Obama came on the scene all intelligent well intentioned political candidates avoided the "D" word because they knew mentioning the "D" word could cause an economic crisis of confidence in the economy and therefore trigger another Great "D". Obama proved he could win an election by ignorantly, maliciously and irresponsibly claiming GW caused a "D" (depression). The crisis occurred within less than a year of Obama first using the "D" word in speeches. Obama not GW caused this crisis and his Greek socialist tax and spend agenda coupled with loose depression talk will cause a Great Depression if he is not booted out of office ASAP.

Friday, May 14:
Retail Sales
Industrial Production
Consumer Sentiment, Mich.

Market Outlook May 14, 2010
The markets dropped on very low volume yesterday indicating that investors are becoming very cautious now and reluctant to buy or short the market. Risk is perceived now as very high. Many stocks and indices have gapped upward and investors may be cautious until the market retraces and closes the gaps. For example look at the gaps in these sectors which clearly have many gapped stocks involved. EDC, DZK, and TNA have serious gaps, as do many others. If you examine their price history you see that 90% of the time they close their gaps within 3 to 8 days, But sometimes it takes six weeks or more and until a market breakdown occurs. Investors feel very uncomfortable buying stocks above their gaps when in most cases they can place a limit order and buy nearer the bottom of the gap.

When the gaps have been closed a gradual advance to near previous highs could take from 4 to 8 weeks. The average investor (who cannot use volume) thinks the bull market had successive highs and held above the necklines during the declines. They therefore expect the next market high can be higher than the last one. That is what the average investor thinks.

But then since the average investor will be told by GE/MSNBC/Pravda to expect a new high we expect the market will rise close to the previous highs (in 4 to 8 weeks when we want to sell everything). The average investor will expect a new high but we expect this time the raw price history as well as the volume corrected history will both fail to have a new high. Our volume adjusted NYSE price information will not likely even come close to its previous high. That advance should happen probably over 4 to 8 weeks. Then we expect a 1 to 2 week second downward market plunge. The average investor will expect that decline to be supported at the low price close of last Thursday. We however expect that resistance will be cut like butter by a hot knife perhaps with inter-day low averages as bad as last Thursday. We do not expect the individual stocks will duplicate last Thursday but the averages could. For instance the inverse silver prices actually declined during the day last Thursday but with communism being rewarded in Greece we expect Europeans to turn to gold, diamonds, art and other solid material goods. We expect precious metal ETFs to soar, but because they have no intrinsic value we expect they will then collapse dramatically. The Chinese and Indian industrial shakeout problems should become clearly visible by then as well. Those new market lows that are likely this summer will likely be the best buying opportunity of this year.


World Markets

Asian markets were down significantly last night; Shanghai down -0.5%, Hong Kong down -1.3%, India down -1.5%, and Japan down -1.6%.

European markets down sharply today in the range from -1.2% to -2.7% this morning about half way through their day.

US pre-market futures are down about 0,7% this morning.

John P. Hussman, Ph.D. this week reports:
"Greek Debt and Backward Induction
The bottom line is that 1) aid from other European nations is the only thing that may prevent the markets from provoking an immediate default through an unwillingness to roll-over existing debt; 2) the aid to Greece is likely to turn out to be a non-recourse subsidy, throwing good money after bad and inducing higher inflationary pressures several years out than are already likely; 3) Greece appears unlikely to remain among euro-zone countries over the long-term; and 4) the backward induction of investors about these concerns may provoke weakened confidence about sovereign debt in the euro-area more generally."

Street Smart this week reports
A Trillion Dollars Buys Only a One-Day Bounce?
Financial Reform Becomes Sillier As It Proceeds.
Evidence of Financial Wrong-Doing Piles Up.