GE provides Americans with Placebo defense and security products.

GE provides Americans with Placebo defense and security products.
GE/MSNBC/Pravda has stopped covering the Obama deficit spending as homage to Obama efforts to make America a socialist nation. George Soros longs to make $Billions betting against America’s currency and GE is helping him.

GE only pays 3% in American taxes and 10% to 20% in foreign taxes. It was recently disclosed by “60 Minutes” that GE has moved many offices oversees and is hiring oversees and not in America. Of course GE is now a foreign socialist shill corporation set up to take American military contracts away from American corporations. Check out GE’s “Protect America” home security product that doesn’t work. I searched on “GE protect America complaints 2011” and got 51000 hits. Some of the complaints appear to be put out by GE to make Americans sound stupid. Those particular complaints make Americans sound like immigrants who don’t know English but people who have home security usually are well off and educated wit personal property they want to protect. Of course GE’s products do not work but they collect $29/mo on them anyway because no one discovers they do not work until their house is robbed or the system wakes them up every night for no reason.

GE sells Americans fake placebo products and we certainly do not want defective jet engines, security systems, and military equipment. GE provides Americans a Placebo defense system.

The FED is flooding the world with American dollars by printing dollars instead of borrowing the money from world creditors. What the fed is doing is competing with China and Japan to keep the competition for treasuries high so that the interest rates are low. It is beginning to appear as though most of the buying is now the USA and very soon none of the treasuries will be bought by foreign governments at these rates. If that happens then there would likely be hyperinflation and the silver and gold speculators will be made right. Since these dollars are flowing into the USA they show up a profits as long as labor costs stay low. Essentially the borrowed money is spent by people with no work ethic and goes to the bottom line of corporate profits creating a feeling that things are getting better when in fact the debt burden is getting precarious. This is no different from how people spent themselves into debt and lived lavishly until they went bankrupt.

The problem is that this cash has created a stock market bubble and a commodities bubble. In spite of high oil prices Saudi Arabia's oil minister said on Sunday the kingdom has slashed output by 800,000 barrels per day in March. Speculators are taking commodities off the market now to making fortunes on the mark-ups.

.Johnson & Johnson was the top performer on the Dow, with shares rising more than 3.5%, after the company reported better-than-expected sales and earnings. Goldman Sucks profit was down 21% from reported a year ago after paying a $1.64 billion preferred dividend to Warren Buffett’s Berkshire Hathaway Inc for his loan that rescued them. Market-making revenue fell 30%. Revenue from commodities, currency and fixed-income trading fell 28%. Goldman also took a $220 million hit related to its assets at Litton Loan Servicing.

Standard & Poors lowered the outlook on the United States' credit to "negative. The United States kept its AAA rating, but the downgrade means that S&P analysts believe there is at least a 33% chance that the agency will have to lower its credit rating on U.S. debt in the next two years. The report released Monday morning says that the United States has a large debt and deficit compared with other highly rated nations, and unlike with those other nations the path to addressing the debt and deficit is absent.


World Markets:
China’s truckers went on strike over rising prices and wage pressure is now beginning.

China’s Foreign Ministry spokesman Hong Lei said Tuesday. "U.S. government debt is a reflection of the U.S. government's credit, and is an important investment product for institutional investors in the U.S. and internationally," he said. "We hope the U.S. government earnestly adopts responsible policies and measures to protect the interests of investors."

European shares hit a three-week closing low on Monday.
Spain sold 12- and 18-month Treasury bills today, while Belgium auctioned bonds due in 2013, 2021 and 2041. German bonds gained on demand for safety.

European shares dropped to a three-week low in morning trade on Monday on lingering worries about indebted Euro zone countries. Finland’s election adds another leader opposed to bailouts. It is expected the market will have a long period of rangebound trade.

Greek two- and 10-year government bonds slumped, driving yields to the highest since before the introduction of the Euro amid concern the nation won’t be able to avoid defaulting on its debt.

US Market Highlights

Initial Claims 04/09 rose dramatically to 415K this week from 382K (corrected for Obama manipulation of 3K)
Continuing Claims 04/02 3695K almost unchanged from 3723K (corrected for Obama manipulation of 15K
NAHB Housing Market Index Apr declined again from 17 to now 16. Most of the 45% who pay no taxes live in subsidized housing so Obama doesn’t care if all that have a work ethic are stuck and cannot move because you can’t afford to sell your house at current depressed prices.
Housing Starts Mar 549K up from 512K
Building Permits Mar 594K up from 534K

Yesterday
MBA Mortgage Purchase Index 04/15 rose +5.3% after declining -6.7% last month
Existing Home Sales Mar were 5.10M up from 4.88M reported last month. But where?
Crude Inventories 04/16 are down -2.322M after being up 1.627M barrels last week. Saudis is cutting supplies as revolutions disrupt most of the mid-east.

This week
Apr 21 8:30 AM Initial Claims 04/16
Apr 21 8:30 AM Continuing Claims 04/16
Apr 21 10:00 AM Philadelphia Fed Apr
Apr 21 10:00 AM Leading Indicators Mar
Apr 21 10:00 AM FHFA Housing Price Index Feb

Market Outlook April 20, 2011
Market volume held in yesterday’s advance and the VIX remained complacently low, a bearish sign of overconfidence.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=5d&l=on&z=m&q=l&c=

The stock market is continuing to test its head and shoulders now. This time it bounced encouraging the buyers to jump in. Now the test is of the previous highs. The fact that the DOW has led the market this year is a bearish sign because safety is the last refuge before a bear market. That is why gold is rising. People only buy gold when they think a disaster is around the corner.
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=


World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. QE@ is creating the stock market and commodity bubbles and this time will take Bernacke by surprise because much of this inflation will be permanent. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian markets were up last night. China up 0.7%, Hong Kong up 1.06%, India up 0.7%, and Japan up 0.8%.

European markets are up this morning in a range of about 0% to 1% half way through their day.

US pre-market futures are up today in a range of about 0.5% to 1.1 % at 7:00 AM EST.