GM, government motors, has had its fourth CEO in 18 months each taking an enormous retirement parachute

GM, government motors, has had its fourth CEO in 18 months each taking an enormous retirement parachute

GM is taking taxpayer money and calling it a profit.

GM is now run by the unions and socialists as a permanent lying socialist firm that continues to take taxpayer money and breaks all moral accounting restraints by claiming it is making a real profit. That socialist lie should be clear to anyone because $billions of taxpayer money has been spent on research, development, and retooling for cars which Americans consistently refuse to own. GM leftists obviously are not writing off those bailouts and stimulation expenses because they could not possibly show a profit yet if they had. No they are taking taxpayer money and calling it pure profit. Most Americans will not buy the GM version of the Trabat and the Yugo.

When will people with meaningful relationships with their pets, water buffalo, camels, sheep, and goats be allowed to marry them in California? Don't those loved ones deserve to inherit wealth and to have marital rights, insurance, and social security after their human lovers are deceased? For far too long Californians discriminate against these ancient established relationships which anyone can see on a visit to Mexico's Tijuana. Necrophilia and pedophilia are accepted in many of the world's most left leaning tribal areas… far more progressive than California. When will leftists seek to recognize the loving relationship Californians and others have with animals and dead things? When will socialist progressives stop stigmatizing people who have true meaningful loving committed relationships outside the narrow bigoted range of leftist acceptability? When will leftists simply make a farce of everything that is not decadent? Why leave anything out? In the mean time Obama does to stop homegrown marijuana in California what Obama does to stop illegal immigration in Arizona, and American unemployment… nothing. And then there is NAMBLA.

Everyone should know about NAMBLA. The abused in Boston came forward when they discovered that a Priest who abused them was at the charter formation meeting of NAMBLA. And why do all the perverts hate the Catholic Church today? It is because their Polish Pope routed out the leftists and perverts that infiltrated the Catholic seminaries in the 1960'3 and supported the Communist insurgents in South America during the 1980's a few years ago. Now the leftist perverts all over the world hate and attack the Catholic Church. Now the leftist perverts have infiltrated the American Episcopal and ELCA churches that have essentially replace their catechisms with the Democrat-socialist national platform.

During Obama's election campaign the asses in Congress made fun of the fact that lowering taxes stimulates productivity and economic growth and that nationalization of businesses and expansion of federal, state, and local government expenditures do the opposite. Now the asses in congress are stuck with people dislocated and delightfully unemployable. What leftist derelict in his right mind who not rather be fishing than working as a grocery stock boy? It is an enormous underclass the Obama socialists are creating which now have a majority and can vote in other congressional asses to take away the money and rights of productive Americans and give more rights to the lazy and the perverts degrading everything ennobling that America once had.

Only the private sector generates profits that pay the way of the employees and pay taxes to pay the salaries of Government workers. Personal income of Americans dropped everywhere in the USA last year with the exception of places with a high concentration of government workers. That is how socialism spreads. Government workers are part of the coalition obama is advancing. Never before have we been faced with a president advancing the causes of his coalition of leftist, trial lawyers, "community activists", the lazy, the incompetent, the illegal alien voters, drug abusers, the perverts, and government workers. And they would like to become the leftist majority that democratically approves the laws to allow them to legally steal from you the way Hitler stole from the wealthiest 2% in Germany. Fascism is nationalistic socialism while communism is international socialism. They are the two flavors socialism comes in when they stop experimenting with free enterprise.


World Markets:
China's news is still good news, but is being misinterpreted by funds to try to kill the budding economic recovery. Of course that is not possible and ultimately the market will respond positively. Hedge funds are spreading miss-information about China to try to unsettle markets that they shorted and are losing big on. WSJ reported that hedge funds already are down 6% because they shorted too late and the market is above the point they shorted. They will fail at their attempt to drive the markets down now. So take advantage of declines as a buying opportunity. When the hedge funds are forced to cover their shorts the world markets will surge.

China continues to do the right things first. China has discovered the way Goldman Sucks and others cheat and lie on their balance sheets by moving bad loans to fictitious independent entities so they do not appear on the books and deceive people. Goldmansucks advised even Greece on how they could bend the rules and deceive the EU about their runaway debt. But China sees that Goldman tactics truly suck and are the worst type of economic corruption that ultimately makes corporations into criminal organizations based on lies and deceit not ideas and productivity. Goldman Sucks sold their customers defective derivatives and then bet against their customers. That is like a Japanese car dealer selling cars that accelerate uncontrollably and then taking out life insurance on the driver. Then collect upon the driver's death. That is how Goldman Sucks made most of their money… not on selling derivatives but on buying insurance that paid them when the derivatives collapsed.

Chinese exports are surging and China needs to prevent an economic bubble. But it is false for hedge funds to say they are entering a slow down. The hedge funds are selling commodities now and making an incredibly bad mistake. One thing is absolutely certain… shortages are on the horizon. Now is the time to prepare for the shortages that always accompany inflation.

German exports also surged in Jun to pre-recession levels. German second quarter growth just hit 2.3% and rising.

Economic Calendar
We are seeing manipulated obama government statistics again with wide data scatter and correction as big as the reported changes.

Productivity-Prel Q2 down -0.9% after being up 2.8% but then corrected (manipulated) upward another 1% last month. This appears to be manipulation of the figures buried in 2% data scatter. If we used the early numbers in both months the productivity change would still be positive. Obama's pretended productivity increase of 3.9% last month was absurd and no one believed it or the market would not have gone down.

Unit Labor Costs Q2 went up 0.2% after an absurd manipulated decrease of 2% between last months initial and final figures. Last month the initial value was -1.3% corrected downward to -3.7% in the final base value used to compute the +0.2% this month. Again the manipulation is almost as bad as the data scatter.

Wholesale Inventories Jun increased 0.1% better than the unmanipulated +0.5% last month.
FOMC Rate Decision Aug 10 was kept flat at 0.25% but Bernacke did manage to instill world confidence in the administration's incompetence. Every word out of Bernanke's mouth makes the markets shudder with fright.

Trade Balance Jun deficit approached $50billion as China recovers faster than the USA… not bad yet see chart:
http://www.martincapital.com/chart-pgs/Pg_baltr.htm

Crude Inventories 08/07 declined 3million indicating rising prices, which counters deflation… good
Treasury Budget Jul deficit spending dropped from $181billion to $165billion… good

Yesterday:
Initial Claims 08/07 at 484K up slightly from the preceding week due to the extensions not going beyond 99 weeks.
Continuing Claims 07/31 fell to 4452K from the 4570K final last week. That benefit was pure Obama manipulation.

Export Prices ex-ag. Jul fell -0.2 % but would have been lower without manipulation because Obama knows unions do not like falling prices. Import Prices ex-oil Jul fell 0.3%. These are deflationary forces that have been in effect more than 20 years now and is why bond investors have done well. Deflation is good for bondholders because as rates decline the bond appreciates in price.

Today:
Aug 13 8:30 AM CPI Jul
Aug 13 8:30 AM Core CPI Jul
Aug 13 8:30 AM Retail Sales Jul
Aug 13 8:30 AM Retail Sales ex-auto Jul
Aug 13 9:55 AM Mich Sentiment Aug
Aug 13 10:00 AM Business Inventories Jun


Market Outlook Aug 13, 2010

The last advance barely broke the resistance level and was not a breakout. But the pullback thus far was only about 50% of the last advance. So if the decline does not break the previous low then the next advance has a much better chance of making a breakout. If it fails that attempt then it would imply the economic recovery is faltering. That is probably why the FED took action to infuse more cash into the economy.

The cash infusion from corporations is beginning to let loose a bull market and a fresh cash influx for acquisitions and expansion of the economy. But that only occurs when they believe the recovery is real. Corporations have cash and are beginning to warm to acquisitions. Inflation looms in the future and will make short term interest rates rise and short term debtors insolvent. They will be the big losers. Homeowners will be the big winners as long term rates are depressed. Bondholders will be big losers in the end and there will be bursts of money leaving bonds for stocks. Commodities will be the big gainers again.

We expect a bigger rally to 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. State and federal government job cuts are needed and no new taxes.

World Markets
Asian markets were up last night. Shanghai up 1.2%, Hong Kong down -0.2%, India up 0.5%, and Japan up 0.4%.

European markets are down in a range of about -1.1% to -0.4% this morning about half way through their day.

US pre-market futures are slightly lower this morning at 8 Am.

We look at China and Germany and think it shows the world market trend is up after all the disparaging double dip false criticism the hedge funds laid on China these past months. German and Chinese markets reflected the slowdown months ago as we have and resumed growth. But a slowdown is not a dip it is just a more sustainable advance.