Trust is the most valuable commodity in the world.

Trust is the most valuable commodity in the world. It was reported that China might have asked N. Korea to stop their insane killing spree. But China cannot be a trusted partner if they arrest stock market analysts and other Americans and put them in prison just for asking probing questions about balance sheets and P&L reports. There must be as much transparency as possible to avoid crooks like Wing Ling Madoff from destroying confidence in China's economy.

But in any event Americans who have dealt with Chinese citizens admire them for their hard work and inquisitiveness. Americans do not throw anyone in prison for asking business financial and education related questions. The entire world benefits whenever people apply their minds and deal intelligently with one another. If all intelligent peace-loving people worked together, then the insane mullahs and idiot offspring of N. Korean dictators would not be able to terrorize smaller nations.

The N. Koreans have essentially formed a communist country with an imperial ruling family. That is amazingly insane! How can a communist country have a king as a ruler? And China goes along with it for fear of the refugees. West Germany had the problem of East German refugees. N. Korean refugees are a problem for S. Korea not China. China has to decide if perhaps they would be better off accepting some N. Koreans to integrate into their nation. But it would be unwise to have refugees near the border because they might later want re-unification too.

In America students are encouraged to work hard on their own and sharing answers on exams is considered cheating in America. In the USA many American students have reported that Koreans tend to form groups who cheat collectively because they are under such pressure to have good grades. That may explain why so many countries claim they are better educated than Americans but would have nothing if America were not always helping them economically and defending them from maniacal governments.

Chinese-Americans have always been known for hard work, honesty and trustworthiness. Trust is the most valuable commodity in the world.

WSJ said this week that one person owns more than 80% of the warehouses of copper driving up prices just like in the 1970's. These shortages are staged by market manipulators who are trying to panic poorly informed investors who like GE/MSNBC/Pravda's Jim Cramer always get sucked into buying high and selling low. Right now the manipulators are creating a fear of inflation when the current international problem is stagnation and recession. GE/MSNBC/Pravda point to the run-up in gold and silver just as Reagan came onto the scene but they fail to inform investors that the people who then bet on inflation lost 80% when the run-up collapsed. People buying commodities now are buying at a relative high. This is not a demand driven run-up it is a temporary hoarding run-up and that will collapse. In the 1970's even toilet paper had a run-up and a price collapse.

General Electric/MSNBC/Pravda tried to double the cost of the Joint Strike Fighter again this year but Congress thwarted their attempt to put their inferior engines on that airplane. GE makes American weapon systems twice as expensive whenever they lose a contract by getting socialists in congress to have expensive studies approved so GE can spend another fortune of taxpayer money and coincidentally GE always concludes their inferior products are better. They try to use Congress to drive GE competitors out of business at the expense of weakening American security.

They were not selected for the JSF either so they want to either kill the JSF just as they killed the F-22 Raptor last year. They use their influence with leftist politicians and MSNBC (which is their propaganda mouth) to force better products of American competition off American weapon systems. They use leftist-socialist-communist style politics that only weaken the USA. They say it is not what GE knows that matters it is who they know in congress. When they succeed in getting their corrupt politicians to force their inferior engines on the wings as a second redundant engine option they immediately double the cost because the airplane then needs expensive modifications and totally inferior maintenance, testing, and support of an incompatible inferior GE/NSNBC/Pravda product.

The F22 Raptor is a stealth fighter, the most advance fighter in the world with over 200 aircraft in service. GE killed production because they say it is expensive. Well golly gee whiz, all of America's weapons are expensive because GE sucks the blood out of the programs requiring continuous GE studies of the competition's weapon's systems so they can steal the technology. The Non-GE weapons are superior to anything the communists are capable of producing. Yes, the air-cooled turbine blades of the F119 engine that powers the F22 Raptor were/are impossible for the USSR or any other communist or maniacal terrorist country to make because they are advanced USA technology. But GE also managed to kill American advanced technology in the area of new machine intelligence. The F119 powered Raptor diagnostic systems could cut the future maintenance costs of all American commercial as well as military aircraft. So all those potential future cost savings were lost last year because the socialists who now run GE/MSNBC/Pravda and steal American technology do not want good old American competition because a socialist run GE/MSNBC/Pravda is naturally against competition in any form with other socialists. According to Marx, profits and competition are evil and GE/MSNBC/Pravda is right up there with him.

GE now gets contracts by buying politicians and using MSNBC/Pravda as their Nationalist Socialist propaganda mouthpiece attacking any of the honest politicians with MSNBC/Pravda and joining in with George Soros to kill America's competitive companies and take away their contracts. GE/MSNBC/Pravda thinks America is too big and bad. GE is no longer American or actually run by Americans any more. Their current president is not an American. Voila! The reason the Boeing Dreamliner is such a disaster is the engines for it are made by foreign management: RR and GE/MSNBC/Pravda. `

In summary, GE/MSNBC/Pravda is now a socialist company run by foreigners with a four pronged strategy for destroying American technology. First they attempt to buy their way in exclusively on every military and commercial product. If they lose to American ingenuity then they use their socialist cohorts to make the superior American products more expensive by getting annual multi-million dollar GE/MSNBC/Pravda study contracts to force their competition to react thus driving up research costs. Third, if they succeed in getting their #2 inferior product on the wing with the best American product, the cost of the program immediately doubles. Fourth, they keep doing this over and over again every year with their leftists supporters who hate America because America still shows the world that American Constitution guaranteed personal freedoms give Americans the incentive to be the most productive people on the planet.

Socialists/communists in all their writings since Karl Mark say they hate competition and individualism. They think that their politburos of idiot psychopaths do a better job planning their economies than Americans can do with free enterprise. They have no concept of what intelligence is. That is why buying GE/MSNBC/Pravda = Buying into Socialist copy-cat/piracy/cheating mediocrity.


Start to boycott China's products until they release their American prisoner, the WS analyst. It is time to be looking at those made in China labels, items to boycott. They are now arresting Americans for no cause (the WS analyst) in violation of international law. We should anticipate a collapse in India's economy as China waits for the moment India is most vulnerable. China's façade of being a good neighbor is rapidly changing as economic success goes to their heads. This crisis that China is slowly making is just the kind of activity that backfires and precedes the overthrow of most tyrannies. China has many leaders ready now to bring a real democracy to China. But if China continues down the current path they will join Iran and N. Korea as part of the world's evil empire. Then they could have a violent revolution or a peaceful USSR type overthrow. Unfortunately the old communist criminals are still in power in quasi-capitalist Russia.

World Markets:
There is no way to know truth about China anymore. China imprisoned an American and gave him 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. As long as China supports N. Korea, shows no respect for the rights of investors seeking the truth, and arrests anyone seeking the truth, China will become an increasing risk of total economic collapse. If they continue to hide the truth about their many corrupt businesses that continue to sell worthless stock to ignorant foreigners China will be heading to a total collapse just as Russia experienced over ten years ago. But this time foreign investors will be burned much more badly.

Economic reports:
MBA Mortgage Applications12/17 Conflicting reports have been published.
GDP - Third Estimate Q3 at 2.6% vs last report of 2.5%.
GDP Deflator - Third Estimate Q3 at 2.1$ vs report of 2.3% last time. About at the FED target
Existing Home Sales Nov 4.68M vs 4.43M last month. Slight improvement
FHFA Home Price Index Oct up 0.7% vs -0.7% last month. Finally a bottom?
Crude Inventories 12/18 5.3M vs 9.85M last month. A cold winter thus far.

Today
Dec 23 8:30 AM Personal Income Nov
Dec 23 8:30 AM Personal Spending Nov
Dec 23 8:30 AM PCE Prices - Core Nov
Dec 23 8:30 AM Durable Orders Nov
Dec 23 8:30 AM Durable Goods Orders - ex Transportation Nov
Dec 23 8:30 AM Initial Claims 12/18
Dec 23 8:30 AM Continuing Claims 12/11
Dec 23 9:55 AM University of Michigan Sentiment - Final Dec
Dec 23 10:00 AM New Home Sales

Market Outlook Dec 23, 2010
The market is at its high for the year just where the funds want it to be. However on a cash flow basis it is not. Declines recently have been on higher than rally volumes and trading volume over all has declined this year. That is another negative indication that the market will drop sharply similar to 2004 after the run-up following the dot-com bubble. There is a lot of optimism that a double dip will not occur and the volatility index is below 20 indicating complacency. That optimism and complacency usually precedes a decline.

Obama socialists cast a long shadow over American recovery because socialism attracts and rewards the most stupid manipulative people. The longer the socialists are in power the more ridiculous they make American policies.

Make sure you take all possible losses to balance your gains. Obama is requiring securities firms to report not just client purchases and sales but also profit and loss. The 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. 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 sell fractions of their under performing investments as much as they will going forward.

GE/MSNBC/Pravda's Jim Cramer loves to pick stocks at their 52-week highs. Socialism means buy high and sell your freedoms short.

World Markets
Asian markets were down again last night. China's market was down -0.8%, Hong Kong down -0.6%, India down -0.2%, and Japan not reporting.

European markets are down this morning in a range of about -0.4% to 0.2% half way through their day.

US pre-market futures are flat at about -0.2 % at 8:00 AM EST.