Crude oil in New York falls; Brent oil extends decline in London, Precious metals drop below 4-month low.

Crude oil in New York falls; Brent oil extends decline in London, Precious metals drop below 4-month low.

New York Attorney General Eric Schneiderman said he is creating a unit to target multi-state corporate tax fraud schemes, corrupt contractors and firms that rip off public pension funds.

The dollar strengthens and gold falls in price as the world discovers the best inflation adjusted returns are found in the USA. The Net long-term TIC Flows for November show a sharp trend reversal as the world buys US dollars and treasuries for a safe higher rate of return like the USA banks have enjoyed at 0.25% cost for the last two years.
With a 0.25% cost and a guaranteed 1.88% return banks make money. While investors are forcing European governments from Greece to Ireland to cut spending as governments prepare to sell $1.1 trillion of bonds this year, demand at Treasury auctions has been the highest on record. The precious metals trend line is now down steeply

 Chrysler Group LLC, the U.S. automaker operated by Fiat SpA , reported a $199 million fourth- quarter net loss that was its largest of the year as the company shipped fewer vehicles while introducing new models.


World Markets:
 As politicians, executives and financiers networked at parties and panels last week in Davos, Switzerland, Barrie Wilkinson was in a nearby hotel, warning that a 2015 financial catastrophe may be looming.
 The number of Britons who expect house prices to rise this year decreased in the last three months as concerns about the economy mounted,
 Irish Central Bank Cuts 2011 Growth Forecast on Fiscal Squeeze
 Egypt's Military Leaders Tighten Six-Decade Government Grip Amid Protests
 Chinese have massive illegalities like Hutchison Whampoa Ltd.’s sale. The Asian criminals are essentially selling their Brooklyn Bridge.
 Red China engages in practices that are illegal in the Free World. Remember China illegally imprisoned two Americans for doing diligent economic research for fear the Americans would expose Red China's economic corruption. Their Nobel Peace Prizewinner was thrown in jail because he accepted the peace prize. China should free the two Americans and let their Nobel Prize winner leave China.

Business trends
Last Friday
 GDP-Adv. Q4 was 3.2% but the FED predicted 3.8% causing the stock market rally after the third quarter was 2.6%
 Chain Deflator-Adv. Q4 was 0.3% or 1.2% per year but the FED target is twice that, 2.5%/yr, and this is after the last quarter which was at 8.8% per year. The 8.8% triggered the surge in precious metals three months ago because it was viewed as inflationary. Now the economy is facing potential deflation again.
 Employment Cost Index Q4 rose 0.4% again indicating that more people are working overtime and possibly even extra unpaid hours to keep their jobs. There is pent-up saving in hiring people provided the leftists back off and stop throwing private sector profits down the government leftist hack worker payola toilet.
 Michigan Sentiment - Final Jan 74.2 rose from 72.7 last month confirming the earlier monthly survey.

Today

Jan 31 8:30 AM Personal Income Dec
Jan 31 8:30 AM Personal Spending Dec
Jan 31 8:30 AM PCE Prices - Core Dec
Jan 31 9:45 AM Chicago PMI Jan

This week
Feb 1 10:00 AM Construction Spending Dec
Feb 1 10:00 AM ISM Index Jan
Feb 1 3:00 PM Auto Sales Feb
Feb 1 3:00 PM Truck Sales Feb
Feb 2 7:00 AM MBA Mortgage Purchase Index 01/28
Feb 2 7:30 AM Challenger Job Cuts Jan
Feb 2 8:15 AM ADP Employment Change Jan
Feb 2 10:30 AM Crude Inventories 01/29
Feb 3 8:30 AM Productivity-Prel Q4
Feb 3 8:30 AM Unit Labor Costs Q4
Feb 3 8:30 AM Initial Claims 01/29
Feb 3 8:30 AM Continuing Claims 01/29
Feb 3 10:00 AM Factory Orders Dec
Feb 3 10:00 AM ISM Services Jan
Feb 4 8:30 AM Nonfarm Payrolls Jan
Feb 4 8:30 AM Nonfarm Private Payrolls Jan
Feb 4 8:30 AM Unemployment Rate Jan
Feb 4 8:30 AM Average Workweek Jan
Feb 4 8:30 AM Hourly Earnings Jan


Market Outlook Jan 31, 2011
Hedge fund stock dump accelerated on increasing volume. This is much more severe than Egyptians and other Islamists rioting.

While earnings and economic reports have been poor these past three weeks the market has ignored the news.
Hedge fund manipulators still control the American stock market. This is not an environment for individual investors. The next drop will not be pretty. Economies around the world face a slowdown as government pretends to create useful jobs as good people in private industry are let go because private businesses cannot produce clear profits.

World Markets
Asian markets were down last night. China's market was up 1.4%, Hong Kong down -0.7%, India closed, Jakarta down -2.3%and Japan down -1.2%,

European markets are down this morning in a range of about -0.1% to -0.7% half way through their day.

US pre-market futures are flat about 0.1 % at 8:00 AM EST.