Federal judge declares Obamacare unconstitutional.

Federal judge declares Obamacare unconstitutional.
While it is good to eat Broccoli, judge says Congress can not force people to do so. Americans have a right to say no to Obamacare without a penalty. That means the Massachusetts health care is also illegal for the same reason. That makes Obamacare unworkable because it depends on mugging/robbing the middle class to pay for care for among others, illegal immigrants.

Judge Roger Vinson, in Pensacola, Fla., ruled that as a result of the unconstitutionality of the "individual mandate" that requires people to buy insurance, the entire law must be declared void. "I must reluctantly conclude that Congress exceeded the bounds of its authority in passing the act with the individual mandate."


National Institute for Economic and Social Research said the Bank of England will raise interest rates three times this year to curb inflation. U.K. government bonds fell for a second day and the pound surged against gold.

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.

Crude rally ends on signs of reduced risk from Egyptian unrest.

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
Yesterday
Jan 31 8:30 AM Personal Income Dec was up 0.4% as last month. Good
Jan 31 8:30 AM Personal Spending Dec was up 0.7% compared with 0.4% last month. Good for economy
Jan 31 8:30 AM PCE Prices - Core Dec core producer prices unchanged after being up 0.1% last month. Still deflationary Japanese style.
Jan 31 9:45 AM Chicago PMI Jan at 68.8 vs 68.6 last month. Manufacturing is stable and good.

Today
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
This week
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 Feb 1, 2011

Economic news is relatively good this week with the exception that prices are increasing well below the FED desired rate of 2.5% inflation. The FED is afraid we could have 20 years of deflation and stagnation as Japan has had unless we can get prices moving upward at 2.5% per year.

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 up last night. China's market was up 0.3%, Hong Kong up 0.2%, India closed, Jakarta up 1%and Japan up 0.4%,

European markets are up this morning in a range of about 0.4% to 1.1% half way through their day.

US pre-market futures are up about 0.4 % at 7:30 AM EST.