Score: Obama 1, Osama 0

Score: Obama 1, Osama 0
President Obama announced that Osama bin Laden was killed by U.S. forces in Pakistan, the Al Qaeda leader's body was dumped in the sea, prompting Americans to celebrate the good news everywhere. Pakistan has been harboring not just the Taliban but also Al Qaeda. Apparently Usama used his current mistress as a human shield and she died as well as one of his many sons.

Silver futures plunged as much as 13 percent on the Comex in New York on investor selling as CME Group Inc., the Comex parent, increased the minimum amount of cash that traders must deposit for speculative positions. Gold and silver scams emerge. Apparently low grade (impure, watered down) silver and gold is being sold and stamped 99.9% pure. More oil, gold and silver has been sold than exists, driving up futures and prices. That is possible when the money put down is only 10%.

World Markets:

Greece government promised Monday to raise an additional €11.8 billion through 2013, with a crackdown on tax evasion a year after Greece was granted an international bailout loan package worth €110 billion from the European Union and International Monetary Fund to rescue it from the brink of default. That is 10% of what they owe with an interest rate now over 7%.

It is time for the USA to leave the IMF. The IMF has been giving away America’s future and the BRICS (emerging countries) are totally ungrateful. It is time for America to hunker down and stop support socialist governments around the world and get back to balancing the budget.

The outlook on Japan’s local-currency debt rating, at AA-, the fourth-highest grade, was lowered from “stable,” to negative S&P announced. The company had reduced the rating by one step in January in the first cut since 2002. Moody’s Investors Service said last month the disaster might bring forward the “tipping point” for the country’s bond market.

US Economic Highlights
This week
May 2 10:00 AM Construction Spending Mar
May 2 10:00 AM ISM Index Apr
May 2 3:00 PM Auto Sales May
May 2 3:00 PM Truck Sales May
May 3 10:00 AM Factory Orders Mar
May 4 7:00 AM MBA Mortgage Index 04/29
May 4 7:30 AM Challenger Job Cuts Apr
May 4 8:15 AM ADP Employment Change Apr
May 4 10:00 AM ISM Services Apr
May 4 10:30 AM Crude Inventories 04/30
May 5 8:30 AM Initial Claims 04/30
May 5 8:30 AM Continuing Claims 04/23 -
May 5 8:30 AM Productivity-Prel Q1
May 5 8:30 AM Unit Labor Costs Q1
May 6 8:30 AM Nonfarm Payrolls Apr
May 6 8:30 AM Nonfarm Private Payrolls Apr
May 6 8:30 AM Unemployment Rate Apr
May 6 8:30 AM Hourly Earnings Apr
May 6 8:30 AM Average Workweek Apr
May 6 3:00 PM Consumer Credit Mar


Market Outlook May 2, 2011
The death of Osama is expected to cause a stock market rally in much of the free world today.



World Markets
International trade shows that the world economy has only revived about 25% not the 60% shown by the stock and commodities markets. QE2 is creating the stock market and commodity. That means more than half of the stock market rise from the 2009 lows is unsupportable and could evaporate. The end of QE2 is not expected to be too disruptive because the FED will maintain the level of current assets and not sell them at this time. See:

http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian markets were mixed last night. China up 0.9%, Hong Kong down –0.4%, India down -0.7%, and Japan up 1.6%.

European markets are up this morning in a range of about –0 % to +0.6% half way through their day.

US pre-market futures are up today in a range of about .3% to 0.5 % at 7:30 AM EST.