Today Oklahoma begins to take control away from the Mexican drug cartel's invasion of America that the socialists support.

Today Oklahoma begins to take control away from the Mexican drug cartel's invasion of America that the socialists support.

Under socialist governments cartel drugs are legal. The leftists make a fortune selling marijuana in California and what it legalized across America. It was legal and very destructive until outlawed in 1914 in America. The Chinese threw out the British particularly because the British were selling drugs in China until the Boxer Rebellion. The whole world and we tried legalized drugs for 2000yrs and it did not work so it was mad illegal in most of the civilized world 100 years ago.


World Markets:
Corporate spending of their massive accumulated cash reserves is beginning to surge. That will come in two forms. Corporations that think they are undervalued will buy some corporate stock back. Secondly, corporations will upgrade their data processing to improve employee productivity. That will improve hiring and inject a lot of cash into the economy. Corporations had been sinks for cash all last year but will soon be a source of cash for economic expansion. That will more than make up for flat consumer spending and will in fact trickle down into consumer spending.

Good quarterly earnings reports came out and better reports will come. But fear of Obama National Socialism has people buying treasuries and not stocks. Socialist Obama and his socialist in Congress are feared to be attempting to make the Federal Government bigger than the private sector. It already employs more people than the top 500 corporations combined.

Economic Calendar
Last week
The world markets all rose handily last week.

Building Permits Jun rose to 586K from 574K. This is great! "GeneralElectric/MSNBC/Pravda lied again and said housing was disappointing! Nonsense, it was a 4% increase. Housing permits rose 4% in one month so future housing starts will be rising too at a similar rate!

Crude Inventories 07/17 dropped from 5M to 0.4M this week. Failed leftist Obama/Chavez energy policies are driving up energy costs to make loony left energy solutions look doable. All socialist spending on those Obama projects are pure corruption, as they will fail and no one will check latter to see how many of Obama's supporters and relatives took the money.
Continuing Unemployment Claims went down because the extension of benefits was delayed by Democrats who have the votes to do whatever Obama wants.

Leading Indicators in June declined because the socialists are killing the free markets with their indifference and incompetence. Does the new SEC chairman know what a PE ratio is. Obama didn't. Once the markets go up the index will go up because the stock market is part of the index.

New Home Sales Jun rose to 330K from 267K, up about 20% but still rising as summer gets under way. We don't need more new homes though even though it makes the economy look better.
This week:
Jul 27 9:00 AM Case-Shiller 20-city Index May
Jul 27 10:00 AM Consumer Confidence Jul
Jul 28 8:30 AM Durable Orders Jun
Jul 28 8:30 AM Durable Orders ex Transportation Jun
Jul 28 10:30 AM Crude Inventories 07/24
Jul 28 2:00 PM FED's Beige Book Jul
Jul 29 8:30 AM Initial Claims 07/24
Jul 29 8:30 AM Continuing Claims 07/17
Jul 29 2:00 PM FED's Beige Book Jul
Jul 30 8:30 AM Chain Deflator-Adv. Q2
Jul 30 8:30 AM GDP-Adv. Q2
Jul 30 8:30 AM Chain Deflator-Adv. Q2
Jul 30 8:30 AM Employment Cost Index Q2
Jul 30 9:45 AM Chicago PMI Jul
Jul 30 9:55 AM U Michigan Sentiment - Final Jul


Market Outlook July 27, 2010
The stock markets are approaching the 100-day moving average line where it needs to decide if it starts the next stage up or consolidates again. Recently each advance has shown improvement and each retraction has been weaker so upward momentum is building.

Fed Chairman Bernanke is pretty down when it comes to the economy. But we calibrated him and there is about a 85% chance that things get better when he is down on the economy.

Market volume has been uniformly very low since around the time Obama was elected. It could be that most investors are still disappointed and stunned by the speed at which Americans are losing freedoms with laws that are planned to go into effect after the socialists are thrown out so that the disaster will happen on the next watch when the taxes and redistribution of wealth go into effect. Then they will once again blame others for the problems they create. But the new Congress needs to show the socialists that their deceit will not work by first replacing the heads of the new social welfare offices and eliminating their support staff.

The BP and the Asian market news continues positive except N. Korea said it might use a nuclear bomb blow up the naval war games the US and S Korea are doing.

Congressional socialists are beginning to talk like they will campaign against Obama's new taxes in hopes Americans are gullible. Congressional democrats are beginning to and investors already realize that the Obama taxes that kick in January 2011 will cause an Obama Great Depression. Bernacke knows it and Congress is beginning to realize how smart Reagan and Bush were. The real problem is that government is much too big. They could start solving the problem by firing all the racist and class conscious government workers and then all the incompetent and surly ones who think we owe them a living.

Next they can cut the unemployment benefits so all the currently unemployable state and federal workers take minimum wage jobs… or as the first Pilgrims and Mao said, "If you don't work you don't eat."

That then solves the illegal immigrant problem because now all the leftist incompetent former government employees will take the jobs back from the Illegal immigrants so that the illegal immigrants can go back home.

Today the illegals come in, claim they work real hard for a year, get amnesty and go on welfare or get a government job just as if they were living in Portugal, Iceland, Greece, or Spain (PIGS). That is where the term PIGS originates.

Obama used his control of Congress to force socialism down the throats of Congress and the American people. Americans would have rioted if he had made the legislation effective immediately. But he obviously thinks Americans are too stupid to notice that the socialism kicks in a few months after the November elections. He knows his centrist national socialist bandwagon type propaganda deceived the electorate and got him elected and he thinks he can fool Americans again. But intelligent Americans know, "Fool me once, you're bad. Fool me twice, I'm stupid."

The cash infusion from corporations will soon let loose a bull market and a fresh expansion of the economy.
We expect a bigger rally to also follow if the corrupt socialists are voted out of office in November. Then Obama socialism can be stopped in its tracks. The imperatives are no new taxes, no new federal programs like Obamacare, and cut state and federal do-nothing jobs.

World Markets
Asian markets were flat last night. Shanghai down -0.5%, Hong Kong up 0.6%, India up-0.3%, and Japan down -0.1%.

European markets are up in a range of about 2% to 0.5% this morning about half way through their day.

US pre-market futures are up at about 0.4% this morning.