Obama’s deficit growth rate tripled in the latest month from –65.4B a month last month to –188.2B per month.

Obama’s deficit growth rate tripled in the latest month from –65.4B a month last month to –188.2B per month.

Egypt’s public prosecutor ordered the detention of former President Hosni Mubarak for 15 days while he is being investigated as part of a corruption probe.

Obama voted against raising the debt limit while he was in the senate, the deficit was under control and a Republican asked for it. Now Obama’s deficit is out of control due to flooding his welfare-voting constituency with money. 6% of Americans now pay the cost of government for the Obama voters who pay no taxes. The next 44% of Americans pay for themselves. The Obama 50% are the cause of the national deficit.

World Markets:
Fitch Ratings lowered its outlook on China’s AA- long-term local-currency rating to “negative” from “stable,” citing a “high likelihood of a significant deterioration” in banks’ asset quality within three years. Bad loans could rise to 15 percent to 30 percent of the total, with concern at the quality of lending compounded by growth in off-balance-sheet credit, Fitch said. Chinese banks extended 7.95 trillion yuan ($1.2 trillion) of new loans last year, while the government claimed they were tightening credit.

The yen weakened against all 16 of its major peers, while China’s yuan climbed to a 17-year high versus the dollar. The interest the US pays in on the five-year Treasury debt jumped three basis points.

Lisbon asks $116 Billion Portuguese Bailout.
Japan’s Nuclear and Industrial Safety Agency lifted the rating level to 7 from 5 on the global scale, the same as the 1979 partial reactor meltdown at Three Mile Island in Pennsylvania. Japan’s nuclear crisis may be raised to the highest level of severity, matching Chernobyl’s rating, as increasing radiation prompts the government to widen the evacuation zone.

Under Jimmy Carter, gold rose to over $800/oz. But by 1999 gold fell back below $290/oz again. Now it is about $1470/oz. We need to warn you now to liquidate gold and silver when it has run up, not after it drops quickly back to about $400 and $8 respectively.
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Canadian job hiring took a pause.
Ireland's ratings were lowered again. Inflation in China and India is not yet in control.
Inflation in India and China is getting out of limits. Gasoline and fuel oil prices doubled under Obama but he and Bernacke say inflation is less than 2.5%. Only morons still believe that.

US Market Highlights

Latest reports
Wholesale Inventories increased again this month by 1% meaning that if sales do not pick up then production will be cut and jobs will be lost.

Yesterday
Trade Balance Feb -$45.8B relative holding from last months -$46.3
Export Prices ex-ag. Mar rose 1.3% up from last month’s 0.9%
Import Prices ex-oil Mar inflation doubled to 0.6 from last month’s 0.3% rise.
Treasury Budget Mar -$188.2B triple the Obama deficit growth rate from -$65.4B last month

This week
Apr 13 7:00 AM MBA Mortgage Index
Apr 13 8:30 AM Retail Sales Mar
Apr 13 8:30 AM Retail Sales ex-auto Mar
Apr 13 10:00 AM Business Inventories Feb
Apr 13 10:30 AM Crude Inventories 04/09 -
Apr 13 2:00 PM Fed's Beige Book Apr
Apr 14 8:30 AM Initial Claims 04/09
Apr 14 8:30 AM Continuing Claims 04/02
Apr 14 8:30 AM PPI Mar
Apr 14 8:30 AM Core PPI Mar
Apr 15 8:30 AM CPI Mar
Apr 15 8:30 AM Core CPI Mar
Apr 15 8:30 AM Empire Manufacturing Apr
Apr 15 9:00 AM Net Long-Term TIC Flows Feb
Apr 15 9:15 AM Industrial Production Mar
Apr 15 9:15 AM Capacity Utilization Mar
Apr 15 9:55 AM Mich Sentiment Apr


Market Outlook April 13, 2011
Market volume shot up 21 % on yesterday’s decline but there was little change in the VIX.
Structural imbalances continue in the economy.

Jim Cramer still said the market is topping now as said most other MSNBC market advisors last night. Does that mean it is time to buy? No, because occasionally Cramer guesses right. His advice is not consistent.

QE2 is destroying the incentive for Americans to save and should be ended now before we have 20 years of stagnation.

The stock market is continuing to test its head and shoulders now. The markets all appear to be topping out. To us it looks like the 47dma is no longer a support level but instead has become the resistance level for a topping trend (head and shoulders) line.

S&P
http://finance.yahoo.com/q/ta?s=%5EGSPC&t=1y&l=on&z=m&q=l&p=m50&a=m26-12-9&c=

We think the next stock market support level will be down at Nov 4, 2010 levels.

World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. 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 0.9%, Hong Kong up 0.6%, India up 2.2%, and Japan up 0.9%.

European markets are down this morning in a range of about 0.3% to 0.9% half way through their day.

US pre-market futures are up about 0.4 % at 6:15 AM EST.