China may now be more corrupt than Nigeria. China mistreated an American economic reporter, Dr. Xue Feng

China may now be more corrupt than Nigeria is. China mistreated an American economic reporter, Dr. Xue Feng, because the Chinese government has become corrupted. A Chinese court sentenced a U.S. geologist/reporter to eight years in prison for violating state secrets laws for discovering and reporting China's fraudulent accounting practices. In a written statement, U.S. Ambassador to China Jon Huntsman called for the release of Dr. Xue Feng, a naturalized U.S. citizen, who in addition to the prison sentence was fined about $29,500 for allegedly providing intelligence (truth about China's financial fraud) abroad.

We are early yet in this new millennium. Americans face a historical choice. We have been left alone at the pinnacle of economic and political leadership. We are abandoned there by the world because it is generally assumed we are a falling empire. The United States has never ignored the human needs of its people and those of the rest of the world. But that is exactly what the enemies of freedom imply when they abrade us and say that we cannot continue to ignore the human needs of our people and those of the rest of the world. They attack us in a foreign language, their serpent language, the language of the cruel and viscous who want so much to be released again to ravage the world and exterminate all that is innocent and good. We see the mentally incompetent dynastic family of North Korea propped up by China. They are murdering South Koreans and firing nuclear capable missiles over Japan just for the joy it brings to all the insane, stupid, and evil people of the world. Yes, the insane, stupid, and evil people of the world also danced in the streets when the World Trade Center was destroyed.
We see the terrorist nation of Iran with the goal to kill every Jew who refuses to leave the land that was their father's land for two thousand years. And what is the Moslem claim on the land of Israel? After Mohammed died Barack (Buraq), a giant mythical birdlike animal is said to have flown Mohammed to Jerusalem as a stopover on his flight to heaven. So it is a sacred Moslem site because they say the dead Mohammed was carried there by Buraq (Barack). Yes it is the same big bird that our American president Barack is named after. It is all a Moslem fantasy of course and one that Nazis loved to hear. Will Barack Obama try to deliver Israel to Mohammed this time for real?
America's choice is to either give in to the tyranny of socialist dictatorship ruled currently by executive branch, fiat regulations and presidential orders or be prepared to take back this handcuffed nation in free elections in 2012. The Nazis on the left want to gag Rush Limbaugh and Fox news with another executive order with what they call a new FCC fairness doctrine regulation. They are writing Obamacare regulations right now to compensate doctors for giving approved death panel advice to elderly patients (see today's WSJ). That is how they think they can avoid the American Constitution and a Supreme Court ruling against the leftists buy using dictatorial Obama decrees and regulations.

See the El-Buraq (Barack) Myth at: http://www.eretzyisroel.org/~jkatz/templemount.html
Early Islamic scholars, with no particular political agenda, interpreted Mohammed's dream flight to El-Aksa * (lit. the furthest place) was to a Islamic heavenly place where the purest and most holy mosque which would be in the courtyard of Allah. That, indeed, would be the "furthest place" or "El Aksa".

The revised Nazi promoted myth of today names the earthly Al-Aksa Mosque built by Khaliph El Malik on the site of the Jewish Temple as the basis of the Muslim claim to the Temple Mount. This is substantially different than that of the early non-political scholars of Islam. Serious Islamic scholars viewed the tale as merely a folk story. The mythical story of Mohammed's night flight, which evolved from unidentified sources after Mohammed's death (Note! Keep in mind that there was no El-Aksa Mosque on the Temple Mount until 80 years after Mohammed's death.). See also the winged horse version:
http://www.gamla.org.il/english/article/2001/jan/win2.htm


World Markets:
China is raising its interest rates for the second time in two months, in efforts to slow its economy and ward off inflation. It was another .25% increase, raising the one-year yuan rate to 5.8%.

The economic policies of China are now ant-inflationary while American policies are anti-deflationary. That will cause investments to continue to move to China the same as the American Economy enjoyed from 1800 until the Clinton bubble burst. It would be wise to raise rates to 0.25% just to incentivize banks to start making commercial loans.

There is no way to know truth about China's corporation's anymore. China is about to face scandals that will make Bernie Maddoff and Mikhail Khodorkovsky look like petty criminals due to corrupt Chinese leaders who take bribes and political payoffs. China imprisons Americans who have the audacity to check the corrupt company books. No doubt corrupt Chinese leaders will be executed before they get the message that economic success depends on honest leaders not corrupt leaders that protect corporate and government criminals. Good leaders do not lock up people who check corporate income statements and balance sheets. Only corrupt leaders criminalize and arrest careful investors.

China imprisoned Dr. Xue Feng and gave him an eight-year sentence because he was in China doing investment research to see if the balance sheets and income statements were truth or a fraud. Seeking truth is now apparently a criminal offense among corrupt leaders in China. That means that we can no longer trust Chinese financial information because fraud in China cannot be exposed. As long as China supports N. Korea (a pathological new dynasty) shows no respect for the rights of investors seeking the truth, and arrests Americans seeking the truth, China will become an increasing risk of total economic collapse and anti-western nationalization/confiscation of property.

China already holds an American with a 16 year sentence. Jude Shao is a naturalized American citizen who started China Business Ventures (CBV) in 1993. CBV focused on exporting American medical equipment (CAT scans, MRIs, X-rays) to China, and by 1997, had offices in San Francisco and Shanghai with 15 employees. It all started when in July 1997 corrupt local Tax Auditors arrived at CBV's Shanghai office and took CBV's accounting records to conduct a special tax audit to solicit bribes. Jude was twice solicited for bribes to stop the investigation, but he refused since he knew that he had done nothing wrong. In April of 1998, Jude was arrested and told by the police that they were asked to "teach him a lesson." He was held incommunicado for the next 26 months.
In June 1999, a trial was held in Shanghai No. 1 Intermediate Court, but Jude was unable to prepare a defense because he was never able to meet with his attorney, who was only hired 10 days prior to the start of the trial. Neither Jude nor his attorney was able to review the evidence against him. In March 2000, the Court issued a ruling convicting Jude of two tax crimes (obviously refusing to pay two bribes) and sentenced him to 16 years in prison.

If you were an honest businessman would you invest in china? GE/MSNBC/Pravda announced a big consortium deal this week to supply China with all the missing technology they need to put Boeing Aircraft out of business. China already has learned how to produce Neanderthal Russian aircraft.

Economic reports:
Case-Shiller 20-city Index Oct dropped 0.8% after increasing 0.6%last month. It would have been a 1% drop if they did not drop last months number by 0.2% to make this month look less disastrous. Obama and the socialists are destroying the economy by not liquidating the Mortgage crisis.
Consumer Confidence Dec dropped again to 52.5 from 54.3% last month.

Yesterday
MBA Mortgage Applications 12/24 Results for the December 24 week along with the December 31 week will be released together on Wednesday, January 5.
Crude Inventories 12/25 up 5M after being down 5.33M last month. The USA has one month worth of reserves. China has ten days worth.

This Week
Dec 30 8:30 AM Initial Claims 12/25
Dec 30 8:30 AM Continuing Claims 12/18
Dec 30 9:45 AM Chicago PMI Dec
Dec 30 10:00 AM Pending Home Sales Nov

Market Outlook Dec 30, 2010
If there is a sell off it should come within the first weeks of January. Obama has done nothing for two years to liquidate the crippled mortgage market. This has frozen worker mobility and is destroying credit ratings so that housing will take five years just to recover to where it was before Barack Obama.

By mid year we expect state and federal worker layoffs because the socialists have not put their government houses in order. Many predict a major sell off at mid year when the individual states are in crisis. But typically the stock market is six month ahead of economy. QE2 ends mid year but we expect that to be extended.

In 2004 the market sunk the first week and then began to recover at mid year. That was after the 2003 rally that the hedge funds held high to the end of 2003. That situation is we believe the closest to what we have today. We expect high volatility in early 2011.

The market is still near its high for the year just where the funds want it to be. However on a cash flow basis it is not. At this point volume is down 50% since last May. Volume of late is the lowest we have seen since the Obama recession.

For your taxes this year, Obama is requiring securities firms to report not just client purchases and sales but also profit and loss. The securities firms, in doing that, have decided to tell their clients in advance so the clients know that they can take some losses to decrease capital gains taxes to as close to zero as possible. Obama will take it otherwise. It will minimize the amount that investors pay in capital gains this year. In demanding more information to harass some investors, all the investors are getting the information needed to drive their taxes as close to zero as possible. In the past investors did not often sell fractions of their under performing investments as much as they will going forward under socialism.

World Markets
Asian markets were mixed last night. China's market was up 0.3%, Hong Kong up 0.1%, India up 0.7%, and Japan down -1.1%.

European markets are down this morning in a range of about -0.2% to -1% half way through their day.

US pre-market futures are down about -0.2 % at 9:00 AM EST.