The Founding Fathers knew the importance of a government of laws protecting the skilled and hard working from the vicious and idle.

The Founding Fathers knew the importance of a government of laws protecting the skilled and hard working from the vicious and idle. Unfortunately many of the vicious and idle were elected to the House and Senate. We must throw them out next week.

The CFTC has been investigating the recent manipulation of the price of silver. Inexperienced previously burned investors have been given a dishonest marketing blitz where silver is fraudulently depicted as a monetary metal like gold. That is untrue. Silver is a commodity like copper and is a byproduct of mining other metals as well as mining mineral itself so its availability increases rapidly with price.

It is true that India and China buy significant amounts of silver but it is not for savings or wealth, they actually eat silver along with a host of other exotic things like rhino horns and ducks feet in China and unusual plants in India.
See: http://www.incredibleindia.org/emailers/news_may05/news_may05.htm
What's that silver stuff on food? Is it safe to eat?
The silver stuff is called varakh. It is actually real silver, beaten really thin. It is usually found on Indian sweets, and yes, it's perfectly safe to eat. According to a feature article in a local magazine, a whopping 275 tons of silver is eaten annually in the form of foil.

James Madison in the Federalist Papers, Feb 5, 1788 wrote 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."

Thomas Jefferson to P. Dupont in 1816 wrote; "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."

In 1824 Thomas Jefferson the founder the Democratic Party also wrote (note in Tracy's Political Economy, 1816), “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."

World Markets:
China continues to lead Asia and the world out of the recession. Obama continues to be a Marxist anchor and will continue weighing down the American economy with uncertainty until he is ejected or resigns from office.


Economic Calendar
Existing Home Sales Sep rose to 4.5M vs. 4.1Million sales last month. That indicates housing has bottomed on its own now only a little more than a year since MSNBC said it did. GE/MSNBC/Pravda is a shill for Marxists.

Yesterday
Case-Shiller 20-city Index Aug rose 1.7% from a year ago and is not inflationary.
Consumer Confidence Oct rose to 50.2% from 48.5%
FHFA Home Price Index Aug rose 0.4% after declining again last month. The housing market continues to bottom out but Obama continues to use it to redistribute wealth in the form of houses to people with drug and other problems that are still not asked about their means of support. Meanwhile Obama's half brother lives in a hut with a dirt floor in Kenya. They killed or drove out most of the Europeans there and redistributed the European's wealth. After you kill the golden goose there are no more golden eggs.

This Week
Oct 27 7:00 AM MBA Mortgage Applications 10/22
Oct 27 8:30 AM Durable Orders Sep
Oct 27 8:30 AM Durable Orders - ex transporation Aug - 0.5% 0.1% 2.0% -
Oct 27 10:00 AM New Home Sales Sep
Oct 27 10:30 AM Crude Inventories 10/23 -
Oct 28 8:30 AM Initial Claims 10/23 -
Oct 28 8:30 AM Continuing Claims 10/16 -
Oct 29 8:30 AM GDP-Adv. Q3 -
Oct 29 8:30 AM Chain Deflator-Adv. Q3 -
Oct 29 8:30 AM Employment Cost Index Q3 -
Oct 29 9:45 AM Chicago PMI Oct -
Oct 29 9:55 AM Michigan Sentiment Final Oct

Market Outlook Oct 26 2010
When world interest rates are very low banks charge more up front in points to record an immediate profit. Banks do not like to give low interest long-term loans because inflation rapidly wipes out future bank profitability. So while rates are down, bank charges are up significantly. The FED plans to buy back (liquidate) longer-term treasuries starting again week. That is a smart government move but it will destroy union and other pension funds that will see higher long term inflation and lower long term rates. Basically this is one way Obama can steal from older Americans and make it look like Americans just don't know how to invest and need government help from cradle to grave. Depressions are some of the best crises Marxists and Socialists create so that they can blame free enterprise and conservatives and demoralize highly productive people who saved all their life only to see the FED pop the Treasury bond bubble.

Still time left to take stock and profits when available.

One question is whether the market is high now on rumor and about to drop on Election Day when the socialists are defeated?

But what if the socialists don't lose the Senate? That would likely hurt the market even more. So doesn't that mean the market has already priced in a free market victory… and if it happens, and more so if it doesn't happen, the market will probably drop after the election?

That is why we are taking profits now. We hope you got out near the top. Volume on the declines was almost 30% higher than the recent past and close to what had once been normal exchange volume.

The Founding Fathers knew the importance of a government of laws protecting the skilled and hard working from the vicious and idle. Unfortunately many of the vicious and idle were elected to the House and Senate.

World Markets
Asian markets were down last night. China's market was down -1.5%, Hong Kong down -1.9%, India down -1.1%, and Japan flat 0.1%.

European markets are down this morning in a range of about -0.4% to +1% about half way through their day.

US pre-market futures were down about -0.4% at 8:30 AM EST.