General Electric and MSNBC are helping Obama usher in a new age of corruption, incompetence, and GE corporate profits while tearing down America

General Electric and MSNBC are helping Obama usher in a new age of corruption, incompetence, and GE corporate profits while tearing down American free enterprise and turning America into another socialist wasteland.

Thomas Jefferson 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."

James Madison in the Federalist Papers, 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."

By 1824 Thomas Jefferson already thought the American Government was too big. He wrote to William Ludlow, "I think myself, that we have more machinery of government than is necessary, too many parasites living on the labor of the industrious."

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

GE/MSNBC/Obama are trying to usher in a new age of corruption, incompetence, and profits via tearing down American free enterprise and expropriating the wealth to themselves and associates the way Obama got his wife a $300,000/yr job. Under socialism you get ahead not by what you know but by whom you know.

General Electric should be broken up because it has betrayed Americans and is undermining national security supporting an ignorant socialist president who is attacking the American defense and intelligence structure on every level. GE/MSNBC/Obama have been:

1) Destroying the American justice system by freeing terrorists who killed Wells Fargo guards in Connecticut and ignoring criminals of Obama's race who intimidated the white poll workers on Election Day in 2008
2) Destroying justice by moving terrorists caught in action, into civilian courts and essentially giving mental throwback Nazis/Al Quaeda killers a free pass in Obama/MSNBC/liberal/socialist anti-American stacked courts.
3) Destroying military morale by subjecting straight soldiers to the sexual harassment of the same kind of folks who harassed alter boys and got away with it for forty years.
4) Dismantling American culture, free economy, and Founding Father ideals.

California's Jerry Brown is the poster boy for "brains fried on drugs."

Mexican drug lords returned the head of the American captured on vacation last week. Mexico's chief investigator of the murder also disappeared.

When the Jackass party took power they blamed America for Mexican drug lords and said it was caused by the American Constitution's 2nd amendment protecting American rights to own firearms. But since Obama took over they have stimulated California marihuana farm investment and Mexican drug lord wars fighting over who gets the cash infusion from the new Pelosi drug addicts. Since Obama took power, Mexico has become destabilized by the jackass stimulation of their drug trade. The Obama jackass party has succeeded in destabilizing the world because they know that destabilization is what pushes stupid people, drug addicted, and lazy people into their international socialist party. Marihuana growers in California have unionized their business to get jackass party support and Teamster Union funds to sue American states to legalize marijuana. Jackass Jerry Brown was chosen as a jackass candidate for Senate despite his disability of having a drug-fried brain.

World Markets:
The Dollar is declining as QE2 (quantitative easing) announcement approaches on Election Day. The FED will repurchase $trillions in treasuries. It is highly likely the average investor will understand what is happening and will then flee US treasuries primarily to commodities. This is already driving up the commodity sector of the stock market. Smart bond investors are already out of Treasuries and are in short-term (<5year corporate bonds) to reduce risk. The commodities and metals have already over reacted because QE2 is really no different from QE1 because it increases Treasury reserves but there are already more than enough available. The only difference is psychological. We have already seen the psychological benefit and real inflation is still many years in the future. So now the hedge funds are coming back to stocks and they have now driven up stock prices again. We see this to be a period like the 1970's when the market rallied and collapsed three times before the inflation actually hit. Stocks did not benefit at all over that period but there were many rallies and busts.

However the 1970's had a democratic controlled Congress not the current Jackass types. We may have a Republican Congress soon like in 1984. Then a side effect of interest rates slowly rising with a new Republican Congress could be a blend of 1970's and the 1990s type euphoria of a return to balanced government budgets and national productivity improvements. However under a continuing Obama jackass Congress unemployment will rise and stagnate, state and federal government deficits will continue to grow, inflation will get out of control (stagflation), and American money will flee into Swiss and offshore safe havens.

Economic Calendar
Minutes of FOMC meeting 9/21 were mostly about QE2. QE2 is already priced into the market.

Yesterday
MBA Mortgage Applications 10/08 up 14.6%, the first increase since declining since the tax incentive lapsed.
Export Prices ex-ag. Sep increased 0.3% like last month like the FED wants with QE2
Import Prices ex-oil Sep also increased 0.3% like last month like the FED wants with QE2

Today
Crude Inventories 10/09
PM Treasury Budget Sep
Oct 14 8:30 AM Initial Claims 10/09
Oct 14 8:30 AM Continuing Claims 10/02
Oct 14 8:30 AM PPI Sep
Oct 14 8:30 AM Core PPI Sep
Oct 14 8:30 AM Trade Balance Aug

This week
Oct 15 8:30 AM CPI Sep
Oct 15 8:30 AM Core CPI Sep
Oct 15 8:30 AM Retail Sales Sep
Oct 15 8:30 AM Retail Sales ex-auto Sep
Oct 15 8:30 AM NY Fed - Empire Manufacturing Survey Oct
Oct 15 9:55 AM Mich Sentiment Oct
Oct 15 10:00 AM Business Inventories

Market Outlook Oct 14, 2010
We continue to recommend taking stock market profits and moving into real estate or real estate investments where the corporations have lots of cash. Check first.

Debt will fall under unrelenting pressure the moment interest rates start to rise and we know the FED is going to push up inflation to try to avoid an Obama jackass Depression.

If the jackasses in Congress are thrown out of office, QE2 may be so small and the American liberties may be victorious over jackass socialist regulation and tyranny and therefore the commodity prices could return to normal (the gold and commodity bubbles could collapse). That means the economy could shift from a 1970s mode to a 1990s mode and the price of gold could collapse possibly under $600/oz after adjusting for inflation. When President Reagan was in office the price of gold collapsed and eventually was under $300/oz.

On the other hand,
If the jackasses in Congress stay in power, the FED is then only trying to raise inflation expectations to unleash the cash being held back by businesses due to Obama's incoherent policies. So if the jackasses stay in power, such a move becomes just another jackass socialist policy. This is similar to the situation with FDR in 1939-40. Japan recently 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. 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 the jackasses are thrown out next month the threat of hyperinflation will be avoided and inflation of 2% or 3% will burst the commodity bubbles. But it is difficult to say how big the bubble could get before investors feel confident the jackass socialist democrats will be thrown out of office. It already stands to lose more than 50% of the gains of the past month. That is why we say to take profits.

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 and the jackasses are thrown out. If that is the case then the will look like geniuses and the FED will appear in full control the economy and market 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 already secretly started QE2.


World Markets
Asian markets were up last night. China's market up 0.6%, Hong Kong up 1.7%, India down -0.9%, and Japan up 1.9%.

European markets are up this morning in a range of about -0.2% to +0.5% about half way through their day.

US pre-market futures were up in a range 0.1% to 0.2% at 8:30 AM EST.