Taxpayers including most seniors want welfare entitlements cut and federal and state employee pensions, health benefits, and pensions cut.

Taxpayers including most seniors want welfare entitlements cut and federal and state employee health benefits, and pensions cut. Retired seniors are still paying more in taxes than Obama’s welfare voting base. Obama keeps threatening to cut taxpayer earned social security to retired taxpayers if Republicans cut entitlements to federal and state employees who constitute dangerously big government like Greece.


The White House released its 2011 report to Congress. Salaries of top aides working for the president $172,000 so no one would pay more taxes under the president’s plan which affects $200,000 or higher.

When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work, because somebody else is going to get what they worked for, that is the beginning of the end of any government. It is called the tyranny of the majority.

Former President Bill Clinton said Obama lacks not only hope and change but also common sense long-term budgeting and planning needed for success. “We’ve gotten ourselves in a position where we’re spending too much money on today and yesterday, and not money enough on tomorrow,” he said during the first panel discussion at the Clinton Global Initiative’s two-day conference in Chicago. “We’re borrowing too much, so that once the economy picks up, we’re creating tomorrow’s problem.” Clinton said the nation needs to find a better mix for the proportion of the U.S. gross domestic product that is represented by federal spending and taxes. “We can’t afford to spend 25 percent of GDP on government expenditures,” he said. “I don’t think we can afford to tax at only 15 percent of GDP, either, which is about where we are.”

World Markets:
Japan’s disaster reconstruction minister quit a week into his job after publicly scolding the governor of a tsunami-devastated region, further damaging Prime Minister Naoto Kan’s embattled administration.

Moody’s Investors Service said the Chinese banks credit rating could be cut. Chinese banks’ loans to local governments are about 3.5 trillion yuan ($540 billion) more than the national auditor’s estimate”.

Denmark’s banks face a decline in earnings as the fallout from Europe’s toughest resolution laws sends funding costs higher.

US Economic Highlights
Past Week
Initial Claims 06/25 428K unchanged from first reported last week 429K
Continuing Claims 06/18 3702K from first reported last week3697K
Chicago PMI Jun 61.1 up from 56.6 , good but specious Obama manipulation of data USSR style
Michigan Sentiment - June down to 71.5 from 71.8 last month.
Jul 1 10:00 AM ISM Index Jun up to 55.3 from 53.5 last month. Nothing much, see:
http://www.martincapital.com/chart-pgs/Pg_ism.htm
Jul 1 10:00 AM Construction Spending May down -0.6% from initially reported 0.4% last month.

This Week
Jul 5 10:00 AM Factory Orders May
Jul 6 7:00 AM MBA Mortgage Index 07/02
Jul 6 7:30 AM Challenger Job Cuts Jun
Jul 6 8:15 AM ADP Employment Change Jun
Jul 6 10:00 AM ISM Services Jun
Jul 7 8:15 AM ADP Employment Change
Jul 7 8:30 AM Initial Claims 07/02
Jul 7 8:30 AM Continuing Claims 06/25
Jul 7 11:00 AM Crude Inventories 07/02
Jul 8 8:30 AM Nonfarm Payrolls Jun
Jul 8 8:30 AM Nonfarm Private Payrolls Jun
Jul 8 8:30 AM Unemployment Rate Jun
Jul 8 8:30 AM Average Workweek Jun
Jul 8 8:30 AM Hourly Earnings Jun
Jul 8 10:00 AM Wholesale Inventories May
Jul 8 3:00 PM Consumer Credit May


Market Outlook July 5, 2011

So how can stocks be selling at only 13 times earnings? That was QE2 going to the bottom line of corporations. With the end of QE2 is that bottom line benefit going to fall or will it hold constant until the FED reduces its balance sheet? No one knows at this point.

U.S. stocks rose Friday and broke the 50 DMA and 100 DMA resistance lines at their crossover. However it is still not a buy signal. This very old short term hedge fund strategy calls for entering the market by the next to last trading day each month and exiting by the 4th trading day of the following month. It is best at the end of a quarter when the funds want to dress up their returns.

The stock market bubble is up near 2007 levels while real unemployment stands close to 20% and state and local governments have run up many $trillions in deficits that have to be paid back. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=5y&l=on&z=m&q=l&p=e50%2Ce100&a=m26-12-9&c=

and the S&P:
http://finance.yahoo.com/q/ta?s=^GSPC&t=5y&l=on&z=m&q=l&p=m50%2Ce100&a=m26-12-9&c=

and the DJI shows a head and shoulders sell signal forming too.
http://finance.yahoo.com/q/ta?s=^DJI&t=5y&l=on&z=m&q=l&p=e100%2Ce50&a=m26-12-9&c=

Low VIX correlates with overconfidence and immanent decline and now fear must rise substantially before the current market sell-off can be considered over. Look how high the VIX has to go now before the bottom is hit in the past!
http://finance.yahoo.com/q/bc?s=^VIX&t=6m&l=on&z=m&q=l&c=

This was Cramer/Lenin/Pravda’s main chart for claiming growth until it showed world stagnation instead. Recovery is one of Obama’s big lies just like his campaign lie that we were in a depression one year before the leftists destroyed American real estate and banks by requiring US banks give mortgages to people of Obama’s ethnic heritage who had no visible source of income to make the mortgage payments. Click on the 5yr chart and see full effect of the slowdown in world dry shipments. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Florida is firing 1,300 workers. New York is cutting education funding and freezing public employee wages for three years. Arizona is slashing Medicaid coverage.

Asian Stocks were up Monday and flat last night. China up 0.1%, Hong Kong down -0.1%, India down -0.4%, and Japan up 0.1%.

European markets are flat this morning in a range of about –0.5% to 0.4% half way through their day.

American markets are up near 0.3% this morning at 7 AM