Chinese economic data may be entirely fraudulent now.

Chinese economic data may be entirely fraudulent now. There is no way to know anymore.

Goldman Sucks moved all the multi million dollar bonuses up to December 30 to avoid possible higher 2011 tax hits. But after the Obama compromise yesterday, Goldman Sucks will now allow them to take the money in January if they prefer. Who says crime does not pay?

A typical scenario with American trial lawyers:
Judas is has worked a whole year and is bored so he drives in front of a post office truck as the truck pulls out, and stops short. The truck dents the passenger side door so he claims a serious back injury. This is the forth back injury claim he has made in just 20 years and his lawyer says it could be worth over $200,000 in an out-of-court settlement since Uncle Sap is the plaintiff and Judas is of the proper victim class and color. So Judas slacks off on his stock-boy job and is laid off and goes on unemployment again for a three-year vacation.

Socialism is the government of the people by the leftists for the laziest of the leftist. If you rob Peter to give Paul a government job, Paul will vote for you but next year you need to rob Mathew as well as Peter to make up for growing general unemployment and increase in government workers that the private economy must pay for in higher taxes. The bigger government becomes the bigger the pool of socialist union voters, the stronger the socialist party becomes and the more burdened and uncompetitive the free enterprise economy becomes. Ultimately the parasites and sycophants run the country and that is called socialism. Hitler and Mussolini were national socialists. Stalin and Mao were international socialists. Castro and Chavez are banana republic socialists. Obama is a would-be banana republic socialist.

New unplanned consequence of overpaying executives is they have more money than they need in just two or three years so they retire like the Phizer executive. That just adds fuel to the myth that they are worth the money they get.

World Markets:
China is bringing forward the release of November economic data on inflation, retail sales, industrial output and fixed-asset investments to Dec. 11, heightening speculation the People’s Bank of China will raise interest rates this weekend. China has a large bubble of unoccupied housing and office space that has been bid up by speculators who believe prices can only go higher. They need a property tax to tax the speculators on each unoccupied unit and that will stabilize the market. These speculators are cornering the market and that is illegal in free market countries. That cornering the market problem occurred in America 100 years ago.

Chinese economic data may be entirely fraudulent now. There is no way to know anymore. China imprisoned an American with an eight-year sentence because he was in China doing investor research to see if the balance sheets and income statements were truth or a fraud. Seeking truth is now apparently a criminal offense in China. That means that we can no longer trust any Chinese financial reports because fraud in China cannot be reported. That means any investing in China could result in 100% losses when their bubble of Ponzi schemes and other fraud breaks. We would advise getting out of the Chinese markets until all Wall Street reporters are freed from China's prisons.

If there is no transparency and no independent verification allowed in China that means their whole system may be based on fraud. China may now be in danger of a stock market collapse because they find it necessary to lock up the people who try to verify the corporation data. It could be the biggest scam ever perpetrated. China could walk away with much more than they would lose if Obama defaults on the treasury debt they hold.

Economic Calendar
The news is that our economy is still bouncing along the bottom except in manufacturing and retail sales that are nearly fully recovered. Planned layoff have risen sharply again.

Last week was bad news
Nonfarm Payrolls Nov up only 39K down from 172Klast month. Very bad
Nonfarm Private Payrolls Nov up only 50K down from 160Klast month. Very bad
Unemployment Rate Nov increased to 9.8% from 9.6%. Very bad
Hourly Earnings Nov no change, down from a 0.2% increase the last time. Deflationary and bad
Factory Orders Oct down -0.9% after being up 2.1% last month. Very bad

Yesterday
Consumer Credit Oct up 3.4B from 1.2B last month. Consumer debt not job income is behind higher sales.

Today
MBA Mortgage Applications 12/03
Crude Inventories 12/04

Thursday
Initial Claims 12/04
Continuing Claims 11/27 -
Wholesale Inventories Oct

Friday
Trade Balance Oct
Export Prices ex-ag. Nov
Import Prices ex-oil Nov
Mich Sentiment Dec
Treasury Budget Nov

Market Outlook Dec 8, 2010
Most metals on the London Metal Exchange and crude oil futures fell today on year-end profit taking.

The stock market again hits the wall at the recent high resistance level. The U.S. market continues in a narrow trading range. Today we could test the upper range again.

Bonds have started taking a beating from the FED and that beating will go on through much of next year. Usually the first effect of a declining bond market is a rise in stock prices and then is followed with a collapse in stock prices. We expect a sharp collapse of the equities markets in January. The people who lost their shirts on stocks went into bonds after 2008. Now as they lose their pants in Bonds they will want stocks again. So later next year could be good for stocks after the bond losers get back into stocks near the highs this year.

The Democrat socialists want to say that things were better until they were thrown out of Congress. Socialists and Communists like to create crises situations so that they can take greater power. But for now we expect the market and commodities will stay near their highs for the rest of this year since they remain a serious economic threat to the economy and they still hold the Congress and can pass any deals or compromises they want.

The commodity bubble is already inflating and could further choke off recovery by driving up costs, reducing margins, and hurting profits.

World Markets
Asian markets were down last night. China's market was down -1%, Hong Kong down -1.4%, India down -1.2%, and Japan up 0.9%.

European markets are mixed this morning in a range of about -0.3% to +0.3% half way through their day.

US pre-market futures are flat about -.1% to +0.2% at 8 AM EST. The good new is that taxes will not rise for two more years, which means people may take profits and actually help reduce the deficit.