Obama now demands that Israel return to the indefensible 1967 borders.

Obama now demands that Israel return to the indefensible 1967 borders. At that time, all of Israel’s neighbors brought troops and tanks to the borders of Israel to annihilate Israel. Israel’s airforce first annihilated the combined air forces of the Moslem Jihadists and then drove the Jihadists back to borders that have slowly been negotiated away for peace. Now our dim wit American administration demands Israel give up everything because Obama has done nothing for mid-east peace. Now the Egyptian Jihadist “Brotherhood” is poised to take over Egypt. Obama has not brought freedom to the Mid-East he has brought Sharia law instead. Obama is totally incompetent and is continuously about one week behind the Jihadists in his thinking (if it can be called thinking).

Obama socialist media stage demonstrations against American Special Forces in Afghanistan because the Taliban is loosing. Obama’s supporters had set up the cameras and had the Taliban supporters’ march directly at the camera's making a dramatic news clip. It was obviously staged and shown on Wednesday and Thursday.

Obama supporters cheat on their taxes and are forgiven and made his Czars ruling the rest of honest America. His illegal foreign Moslem supporters return American taxpayer foreign aid to his campaign in thousands of individual contributions because no contribution less than $400 needs to be reported. That is the reason Obama gets all those small contributions. Obama is the most corrupt president in history. In Connecticut it was just announced that about $8Million from one state department has just been made available for no-money down mortgages so the crooks can get mortgages again and then default at taxpayer expense and the corrupt banks don’t lose a cent in the process. That is how socialist corruption works. In the end we are all impoverished.

Obama regulations limit capitalism and profits, and require his political opponents to reveal their sources but allow total corruption as long as it helps him get $Billions in his multiple reelection slush funds. Ted Butler of ETF Daily News, “The reoccurring theme, is that the CTFC Commissioners refusal to enforce the law has signaled to all parties in the physical silver COMEX futures market, the NYSE and all the various other exchanges in which the trading of silver-related stocks and options are conducted, is that it is open season for manipulation of the silver and silver related markets, regardless of how illegal and blatant it has become, and regardless of how damaging it has been and will continue to be to the multitude of small private investors.”

The head of the IMF should be from countries that do the bailing out. The EU’s most socialist countries are the areas that need to be bailed out. Having any group that needs the bailout deciding how much to give of OPM (other people’s money) is a recipe for corruption and graft. Usually it is the USA that historically bails out others.

The influential banking community and unions contribute so much to the $1 Billion that Obama wants to raise for the next election of socialists. Come-on $1Billion to elect a socialist president? That is obscene like the first $1 Billion dollar bonus package for an incumbent! That is sick greed and selfishness at its worst.

World Markets:

Economic fraud and corruption in China is becoming more visible now as foreign investors begin to take losses. This could be close to the end for China. Russia went through the same thing in the 1990’s before becoming a socialist gangster economy. But China is far more stable than Russia and is trying to understand republics and free enterprise.

U.K. unemployment claims rose in April at the fastest pace since January 2010, underlining the fragility of the economic recovery as government spending cuts and accelerating inflation sap consumer confidence.

German investor confidence declined for a third month in May as faster inflation threatened to curb consumer spending and Europe’s sovereign-debt crisis worsened.


US Economic Highlights
Past Week
NY Manufacturing activity in May plunged to 11.9 from 21.7 last month. Terrible
Net long-term TIC Flows Mar into the USA declined to $24.0B from $26.9B, not good.
NAHB Housing Market Index May was 16 stabilizing at a low of 16.
Housing Starts in Apr fell to 523K from 549K last month.
Building Permits in Apr fell to 551K from 594K last month.
Industrial Production stopped growing in Apr after increasing 0.8% last month.
Capacity Utilization Apr fell 76.9% from 77.4% last month.

Yesterday
The MBA Mortgage Index 05/13 applications composite index increased 7.8% from the preceding week. The rise in the composite index masked a drop of 3.5% in the purchase index. The refinance index posted an impressive 13.5% increase, extending its recent gains over the past few weeks. Mortgage rates continue to move lower, and refinancing has intensified in tandem. It is down from the 8.2% increase the previous week.
Crude Inventories 05/14 held constant at 3.703M which looks like a mistake.
FOMC Minutes May indicate QE2 is being phased out.

Today
Initial Claims 05/14 were409K down from 434K last week. Good
Continuing Claims 05/07 3711K down from 3756K last week. Good
Existing Home Sales Apr 5.05M down from 5.09M last month. Bad
The Philadelphia Federal Reserve Bank said its business activity index slumped to 3.9 from 18.5 in April. It was the index's lowest level since October 2010.
Leading Indicators Apr -0.3% down from 0.4% last month. Terrible! Two quarters of that would be the definition of another recession.

Market Outlook May 20, 2011
The stock market has now broken the lower resistance line and did not bounce above it on Thursday. With QE2 ending there is less chance of a bounce. On a cashflow (not price basis) there was no new high after the last breakdown. That is why we are not in the market at this time. This week is critical if the market is headed lower as downward capitulation is more probable at the 50 DMA line.
http://finance.yahoo.com/q/ta?s=%5ENYA&t=6m&l=on&z=m&q=l&p=m20%2Ce50&a=m26-12-9&c=

Obama does not want to balance the budget now before it gets out of control because it’s the economy stupid! Balancing the budget now would help the economy out of the recession after the 2012 elections but would hurt Obama’s going into the election. But if he is the national socialist megalomaniac some say he is, he will try to spend his way into the election and wants to lose anyway so that the Republican that follows him faces the Greek style social and economic breakdown. If the nationalist socialist cannot get respect then he will seek to look better in history by making the situation much worse for the president that defeats him.

World Markets
In two years international stocks have achieved 70% of the excesses of the 2007 bubble but International trade shows that the world economy has still only revived about 25% not the 70% shown by the stock and commodities markets. QE2 is created the current stock market and commodity bubble. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate quickly. See:

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
Click on the 3yr chart and see the low flat-line forming.

Asian markets were mixed last night. China down -0.1%, Hong Kong up 0.2%, Taiwan down -0.3%, Seoul down –0.6%, and Japan down –0.1%

European markets are flat this morning in a range of about -0.3% to 0.4% half way through their day.

US pre-market futures are flat today at about -.2% at 7AM EST.