Thursday, January 20, 2011

Hutchison's executives may eventually be hunted down, tried and shot by the Red Chinese who run Hong Kong

Hutchison's executives may eventually be hunted down, tried and shot by the Red Chinese who run Hong Kong and all the Chinese assets they are trying to illegally sell could be confiscated by the state.

Remember they illegally imprisoned two Americans for doing diligent economic research for fear the Americans would expose Red China's economic corruption.

The was a saying in America one hundred years ago, "Would you like to buy the Brooklyn Bridge? Hutchison Whampoa Ltd.’s sale of Chinese port assets may raise more than Singapore’s combined 31 initial public offerings last year, boosting the city’s bubble just as it is about to burst. If that were not bad enough, Hutchison said it was listing the new Hong Kong port company in Singapore because Red China's Hong Kong Exchange regulations don’t allow such trusts. Hutchison's executives may eventually be hunted down, tried and executed by the Red Chinese who run Hong Kong and all the Chinese assets they are trying to illegally sell could be confiscated from the investors. Does Hutchison Whampoa think it owns China? You would be better off buying the Brooklyn Bridge. This shows the extent to which the Asian bubble has grown and the brazen criminal activities caused by the communists' complete lack of understanding that honesty and trust are the underpinnings of free enterprise. Such a brazen degree of Red Chinese corruption is a sign of impending economic collapse of their bubble.

The dollar strengthens 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.
Treasury 10-year notes pay 1.88 percent after subtracting consumer price increases, compared with 1.41 percent for German bunds and 1.13 percent for Japanese government bonds. Gilts yield four basis points less than the U.K.’s inflation rate. America's QE2 is NOT INFLATIONARY! It is designed to prevent the deflation that has been destroying the Japanese economy for twenty Years. 2.5% inflation is historically a very low money supply expansion rate needed to allow for population increase and for the East to catch up with the West.

With a 0.25% cost and a guaranteed 1.88% return banks make $15.3 Billion for every $Trillion of USA debt they carry. 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

World Markets:
China is in America to accelerate the rate at with American technology is pirated via joint ventures. GE has already sold out the aviation industry giving China everything they need to build a Dreamliner.

Asian markets show caution. China's markets declined -3% Monday and -2.9% last night in a sharp selloff. European stimulation puts cash into the stock markets to try to improve asset values and make reserves appear larger than they otherwise would be. World liquidity is shrinking because the USA is seen now as such a safe investment compared with massive illegalities and sucker sales like Hutchison Whampoa Ltd.’s sale. The Asian criminals are essentially selling their Brooklyn Bridge.


Business trends
Empire Manufacturing Jan rose to 11.9 from 10.6 reported last month. Small improvement
Net long-term TIC Flows Nov: US Treasury reported that in November Net Long-term TIC Flows increased to $85.1B from 27.6B. This indicates that the dollar will likely strengthen significantly. See:
http://nowandfutures.com/key_stats.html#tic
NAHB Housing Market Index Jan remained unchanged. No improvement.

Yesterday
Jan 19 7:00 AM MBA Mortgage Purchase Index 01/14 +5% improved from +2.2% last month.
Jan 19 8:30 AM Housing Starts Dec 529K down from 555K. Which is good because there is a glut of unoccupied housing.
Jan 19 8:30 AM Building Permits Dec 635K up from 555K. Which is bad because there is a glut of unoccupied housing.

Today
Jan 20 8:30 AM Initial Claims 01/15 -
Jan 20 8:30 AM Continuing Claims 01/08
Jan 20 10:00 AM Existing Home Sales Dec
Jan 20 10:00 AM Leading Indicators Dec
Jan 20 10:00 AM Philadelphia Fed Jan
Jan 20 11:00 AM Crude Inventories 01/15

Market Outlook Jan 20, 2011

Cracks are beginning to appear in the American stock market bubble in commodities, gold, energy, and other financial instruments depending on Asia's bubble which is beginning to show incredible amounts of ignorant speculation and corruption getting ready to be exploded. Honesty and trust, not Karl Mark, is what is lacking in Asian expansion.

Currently American investors remain at historic levels of optimism, although there were very few to be found actually investing in recent weeks. Most are already fully invested. Short Selling Against S&P 500 Companies is at a one-year low, lower than before the May Flash Crash. We are seeing evidence that Americans question that Apple and Google could really be worth more than Japan in market cap. American technology stocks are overpriced because General Electric socialists/ MSNBC/Pravda are selling out other American companies by giving away American technology to curry favor with the communists of China.

By mid year we expect state and federal worker layoffs because the socialists have not put their government houses in order and the Tea Party wants smaller government. Raising taxes would allow states go even deeper in the hole with union contracts and tip into default. Many predict a major sell off at mid year when several individual states also are in budget crisis. But typically the stock market is six months ahead of economy. QE2 ends mid year but that is likely to be extended.
Foreclosures to push American home prices down another 5% in 2011according to RealtyTrac

World Markets
Asian markets were down last night. China's market was down -2.9%, Hong Kong up 1.1%, India up 0.3%, and Japan down -1.2%,

European markets are down this morning in a range of about -0.3% to -1.5% half way through their day.

US pre-market futures are down about -0.2 % at 7:00 AM EST.

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