The founders of the Democratic Party said the Bill Of Rights was intended to protect us from redistribution of wealth.

The founders of the Democratic Party said the Bill Of Rights was intended to protect us from redistribution of wealth.

They said the right to bear arms was given to patriots to overthrow the government when necessary to regain liberty with the fresh blood of patriots and tyrants.

Thomas Jefferson and James Mason were the founders of the Democratic Party.

Thomas Jefferson said to P. Dupont in 1816, "The majority oppressing an individual, is guilty of a crime, abuses its strength, and by acting on the law of the strongest breaks up the foundation of society."

But James Mason said the same thing, but more eloquently.
James Madison in the Federalist Papers said Feb 5, 1788 to the Massachusetts Convention, "but as a just government protects all alike, it is necessary that the sober and industrious part of the community should be defended from the rapacity and violence of the vicious and idle. A bill of rights, therefore, ought to set forth the purposes for which the compact is made, and serves to secure the minority against the usurpation and tyranny of the majority." "It is therefore as necessary to defend an individual against the majority in a republick as against the king in a monarchy."

Thomas Jefferson said
“To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, the guarantee to every one of a free exercise of his industry, and the fruits acquired by it." (note in Tracy's Political Economy, 1816)

Thomas Jefferson, the founder of the Democratic Party actually said to William Ludlow in 1824 was, "I think myself, that we have more machinery of government than is necessary, too many parasites living on the labor of the industrious."


World Markets:
Pakistan is beginning to fall to the Muslim terrorists. This is Obama's war of treachery now. Their goal is a Pakistan under Sharia law and possessing nuclear weapons.

Brazil stocks are near bubble levels now.

The Dollar is declining as QE2 (quantitative easing) announcement approaches. The FED will repurchase $trillions in treasuries. That means the printing press will be running to repay the Chinese and others who were buying treasuries. But because interest rates are so low on treasuries the inflation adjusted value will go negative. Initially the value of treasuries will go up but then money will flow into commodities because eventually treasuries will have no protection from inflation. It is highly likely the average investor will understand what is happening and will then flee US treasuries primarily to commodities which will drive up that sector of the stock market.

Economic Calendar
So far this week
Factory Orders Aug were down -0.5% possibly mostly because last month they were first reported up 0.1% and then manipulated up 0.5%. If they did not manipulate the numbers after they are reported the variances would make more sense.
Pending Home Sales Aug were up 4.3% after first being reported up 5.1% last month. Any way you cut it this is a resumption of the housing recovery to before the tax incentive was dropped.
ISM Services Sep increased growth to 53.2 from a level of 51.5 last month
MBA Mortgage Application 10/01 declined only -0.2% after declining -0.8% last month.
ADP Employment Change Sep said 39,000 net jobs were lost and Obama was wrong. 10,000 jobs were not gained the previous month, 10,000 jobs were actually lost.
Crude Inventories 10/02 rose 3.1M last week after a small decline the previous month.

Today
Oct 7 8:30 AM Continuing Claims 09/25
Oct 7 3:00 PM Consumer Credit Aug

This week Oct 7 8:30 AM Initial Claims 10/02
Oct 8 8:30 AM Nonfarm Payrolls Sep
Oct 8 8:30 AM Nonfarm Private Payrolls Sep
Oct 8 8:30 AM Unemployment Rate Sep -
Oct 8 8:30 AM Hourly Earnings Sep
Oct 8 8:30 AM Average Workweek Sep
Oct 8 10:00 AM Wholesale Inventories Aug


Market Outlook Oct 7, 2010

The FED has opened its mouth and put its QE2foot in it.

The FED is trying to raise inflation expectations to unleash the cash being held back by businesses due to Obama's incoherent policies. This is similar to the situation with FDR in 1939-40. Japan said it would do the same thing to end 20 years of dis-inflation. The market rallied and QE2 may very well raise inflation. But we already have a commodities bubble forming. The steep rise in all commodity prices will be an inhibitive cost of doing business and business will need to borrow and up leverage instead of de-leveraging. Ultimately, if hyperinflation is avoided and inflation is 2% or 3% then the commodity bubbles will burst. But it is difficult to say how big the bubble could get.

The cost of new construction will rise and housing prices would recover if done gingerly. The best we could hope for is if the FED says they already secretly started QE2 and caused this present run-up. If that is not the case then there is a major speculation bubble now inflating that could hurt the economy and the markets. It would say the FED has no control it is all market mass psychology.

Something like QE2 has either never worked before, or has never been done correctly before, or was done secretly and possibly worked before. The best way would have been to do it secretly. Lets hope the FED says it started QE2 at the start of this latest rally.

Obama could be supporting a Moslem terrorist takeover of Pakistan. It is hard to understand why Obama is letting Osama destroy American supply lines in Pakistan.

World Markets
Asian markets were down last night. Hong Kong 0%, India down -1.1%, and Japan down 0.1% inflating their currency.

European markets are flat this morning in a range of about 0.1% to 0.2% about half way through their day.

US pre-market futures were flat at -0.2% to +0.2% at 8:00 AM EST.