Record cold across the world as global warming "be happy" party in Cancun closes for another year.

Record cold across the world as global warming "be happy" party in Cancun closes for another year.

Human caused global warming is the worlds greatest socialist farce aimed at re-distributing wealth from productive intelligent and creative free people to the worlds "be Happy" people who want to live forever as children with someone else taking care of them.

Banks stash the cash and will not invest their cash in new businesses if they can borrow from the FED at essentially zero interest and use their cash to buy treasuries at higher rates as the banks do. They have guaranteed profits and no risk with the current deal the FED gives them. Businesses will not invest their hoards of cash when deflation tells them it is better to wait for lower costs. So rising rates and QE2 are the right thing to do except it is time for the FED to raise the cost of capital by raising discount window rates to encourage banks to invest in American business.

The treasury is running a monthly deficit at a rate of $1.7Trillion


World Markets:
China did not raise interest rates this weekend and now risks a more abrupt tightening in monetary policy next year even as inflation accelerated to the fastest pace in more than two years. Consumer prices jumped 5.1 percent in November, a statistics bureau report showed Dec. 11. A measure of wholesale costs climbed 6.1 percent, exceeding all 28 estimates. World crude oil prices advanced after a Chinese government report showed their refineries ran at record rates last month, signaling oil demand will continue to increase in the world’s largest energy user.

Chinese economic data though is likely 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 Chinese financial information because fraud in China cannot be exposed.

This week's news
Friday
US Nov treasury budget deficit was $150.4Billion up from the deficit of $120.3Billion last month. That means Obama's deficit is now running at $1.8Trillion per year or more than four times higher than the highest deficit George Bush ever had during his eight years and actually close to the total sum of Bush's deficits over his eight years. And that is why Obama was elected because he was going to fix the deficit... so he said.

This week
Dec 14 8:30 AM PPI Nov
Dec 14 8:30 AM Core PPI Nov
Dec 14 8:30 AM Retail Sales Nov
Dec 14 8:30 AM Retail Sales ex-auto Nov
Dec 14 10:00 AM Business Inventories Oct
Dec 14 3:15 PM FOMC Rate Decision Dec 14
Dec 15 7:00 AM MBA Mortgage Applications 12/10
Dec 15 8:30 AM CPI Nov
Dec 15 8:30 AM Core CPI Nov
Dec 15 8:30 AM Empire Manufacturing Survey Dec
Dec 15 9:00 AM Net long-term TIC Flows Oct
Dec 15 9:15 AM Industrial Production Nov
Dec 15 9:15 AM Capacity Utilization Nov
Dec 15 10:00 AM NAHB Housing Market Index Dec
Dec 15 10:30 AM Crude Inventories 12/11
Dec 16 8:30 AM Initial Claims 12/11
Dec 16 8:30 AM Continuing Claims 12/05
Dec 16 8:30 AM Housing Starts Nov
Dec 16 8:30 AM Building Permits Nov
Dec 16 8:30 AM Current Account Balance Q3
Dec 16 10:00 AM Philadelphia Fed Dec
Dec 17 10:00 AM Leading Indicators Nov

Market Outlook Dec 13, 2010
Obama policy is to abandon the WASP seniors who have paid in all the Social Security funds in favor of his racist policies to help those who have the "be happy" culture that rejects the work ethic. The "be happy" culture comes up from the tropics to where ever socialists provide an easy life of welfare and $billions in "be happy" housing stimulus benefits for Obama's people. Somebody has to pay for all these people who have liberated themselves from the drudgery of work and who are so creative in how the play and have fun. 40% of Americans now pay no taxes and a little more than half of them (~25%) have been liberated from the WASP (White Anglo-Saxon Protestant) work ethic. Obama is the first president of color and the first to entirely eliminate WASPs from the US Supreme Court.

It is reported that Obama made 80,000 of his "be happy" people millionaires by giving them reparations for years of discrimination by the Agricultural Department which as with most government jobs happens to employ mostly "be happy" people who need to pretend to work so they can retire with twice the benefits as the cold hearted workaholics who work real jobs and pay taxes.

Making "be happy" people millionaires is part of Obama's stimulation policy because they spend money faster than they can legally get it. That is called socialism. That is why he wants to raise taxes on people who actually do real work and who create real jobs. None of the kinfolk in the "be happy" Obama voting block want a real job so what good are productive people anyway then they always vote against socialism. When Obama has a 50% "be happy" voting block he can create his own USA Banana Republic like the ones his idols Castro and Ortega created. With the stoke of the pen he can then change the US Constitution and get rid of the American Democracy and allow for succession of power of the ruling family like they have now in Cuba, N. Korea, and no doubt soon in Venezuela.

No longer will "be happy" people be called lazy. No longer will judges apply the cold-hearted justice of WASPs. From now on judges must give special consideration to the "be happy" life stile and the unfair proportions in which they get busted for drug running and homicides. Obviously "be happy" people are not happy that so many of their kin end up in prisons. The new Obama "be happy Justice system" will level the playing field of justice and make sure there are equal proportions of WASPs and Tea Party folk in prisons. The Obama Justice Department upon taking power two years ago let it be known that returning soldiers are a terrorist threat. They are trained killers and Obama needs a domestic army to protect he and his socialist government. In the mean time he wants the regular army run by gays. He wants everyone in the army to kiss the great Obama ass.

China held off further increases in interest rates allowing their bubble to grow indicating China's inflation will increase and the world balance of trade will improve in Europe and the USA.

Gold and Silver on the London Metal Exchange declined as the dollar continues to strengthen. The Euro was hit hard due to their debt crisis.

The stock market continually hits the wall at the recent resistance level which is virtually the high for the year. The U.S. market continues in a narrow trading range. We continue to test the upper range yet again but any breakout is likely to be a trap of serious proportions. Optimism is high but evidence is lacking that the US economy is accelerating this quarter.

The A&P declared bankruptcy, one of the longest profitably running stores in America.

Bonds are still 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 and lose again by investing high in stocks.

World Markets
Asian markets were up last night. China's market was up 2.9%, Hong Kong up 0.7%, India up 0.9%, and Japan up 0.8%. The China bubble will raise world food and energy prices.

European markets are up this morning in a range of about 0.4% to +0.9% half way through their day.

US pre-market futures are flat again at about +0.3% at 8 AM EST.

The court in Virginia is expected to rule soon on the constitutionality of Obamacare. Obama wants Americans to all have cradle to grave care like little children whom always get the best treatment in America. It is expected to go to the Supreme Court. Obama is expected to use executive decrees to create his vast Obamacare bureaucracy populated primarily with his "be happy" constituency and entrenching socialist government dependency so that America will go the way of Russia, China, and N. Korea. It only takes about five years to liquidate the wealth of a former free nation and then it takes about another fifty years of universal slavery before a first uprising against the dictators. All forms of socialism quickly turn to dictatorship when there is no American type freedom loving people willing to fight for other people's freedom. If the USA had not entered WWII Hitler would have married and his children would be ruling most of the world. He would have crushed Russia and China. There would have been very few Jews alive today but then he would have killed most Arabs too and almost everyone in Africa to make room for his colonization. If America falls to socialism, Europe will fall quickly to despotism and it could be hundreds of years of genocide and dark ages before the next real democracy rises up. Hitler only killed about 20 million civilians, Stalin lived longer and killed only about 80 million civilians, and it is estimated that the Chinese communists have killed several hundred million unarmed civilians. The first thing these socialist did was take the guns away from everyone. Had America not stopped Hitler, Hitler would likely have killed billions of people including Stalin and Mao. Obama is so sweet just like the Germans thought Hitler was before he became a dictator.