Socialism is the government of the people by the leftists for the laziest of the leftist.

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 more government workers to pay.

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.

We must not only cease our present desire for the growth of the state, but we must desire its decrease, its weakening. Government is an association of men who do violence to the rest of us. L. Tolstoy

Government can never redistribute wealth for any long period of time it can only impoverish everyone when it tries. A leftist ELCA run University could, if it is disturbed by the fact that so many minorities get low grades and drop out of school, it could consider the following type of logic. Why not give a full scholarship to those who fail every subject, 50% for a D average, 25% for a C average, and nothing for brighter students who signs of responsibility or a work ethic. Those A and B students really are capable of finding work or a loan so that they can attend anyway. The net result is that the brighter student can still beat the dumb and lazy because they know the right answers to the tests while the dumbest and laziest students have only a 50% chance of getting a true/false answer correct. The bright students can always beat the lazy and dumb because the A student is capable of getting only 90% right so he can put down 90 wrong answers if that is all it takes to get them a free education. So in socialist countries where everyone is entitled to all they can eat, a house, a car, and job we see how it ends up. In East Germany and Russia they went hungry, lived in the same unpainted filthy house for 50 years, had Trabat type polluting cars that were like driving a smoky lawn mower, but usually could not drive because there was no gasoline. They just pretended to have a real job, and the government printed money to pay them. In Red China they had starvation, lived in huts, rode bicycles, used human powered rickshaws, and were employed as serfs and virtual slaves. Today Germany is united and a powerhouse. Russia is no longer a criminal communist state it is just criminal, and China has freed up their economy and is doing much better but there is a real doubt about the government that imprisons anyone how tries to look at the company financial statements. They government may still have mentally unstable criminal communist leaders like the N Koreans. China could end up as another Cambodia and murder everyone who is succeeding in their economic boom.

When Communists do not become free but only experiment with private property they have a tendency to go to a gangster government or relapse and become homicidal Cambodia style.


World Markets:
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
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
Average Workweek Nov 34.3 hrs unchanged. Flat recovery
Factory Orders Oct down -0.9% after being up 2.1% last month. Very bad
ISM Services Nov at 55 up slightly from 54.3 last month. Slight improvement.

Today
Consumer Credit Oct

Wednesday
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 7, 2010

The stock market has bounced back up through the 21 Day moving average resistance level but not to the recent high resistance level. The U.S. market continues in 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 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 until all the bond losers get back into stocks near the high.

The 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 year since they still hold the Congress and can pass any deals or compromises they want.

The cause of each of the sixteen or so economic bubble bursts that America has endured since 1776 has always been slightly different. It has ranged from private banks, to central banks, to railroad busts, cornering futures markets to the recent Senate Banking Committee corruption of requiring loans to people of Obama's race with don't ask don't tell credit verification. If you asked questions Freddie and Fannie would not guarantee the mortgages of your firm so you lost all that business. Of course we taxpayer's still do not know our liabilities and the situation is getting worse. The housing market is slowly collapsing because the FED is not liquidating that junk like they said they would two years ago. We expect the current socialist government's debt policies and the growing underclass that would support a promised benevolent socialist dictatorship will cause the next recession.

World Markets
Asian markets were mixed last night. China's market was up 0.7%, Hong Kong up 0.8%, India down -0.2%, and Japan down -0.3%.

European markets are up this morning in a range of about 1% to +2% half way through their day.

US pre-market futures are up about 0.8% at 8 AM EST. The good new is that taxes will not rise for two more years which means people may take profits next year and actually help reduce the deficit. The good news of a sane compromise with some Tea Party ideas is buoying world markets today.