Governor Perry to lame duck President Obama, Actions speak louder than Teleprompters.

Governor Perry to lame duck President Obama, Actions speak louder than Teleprompters. Perry said, “The president said I needed to watch what I say,” “I just want to respond back, if I may: Mr. President, actions speak louder than words. And my actions as governor are helping create jobs in this country. The president’s actions are killing jobs in this country.”

Obama said he would allow most illegal immigrants that are in deportation proceeding to stay so that he can regain the support of Hispanics. This will cause a new flood of illegal immigration and an enormous welfare burden just when unemployment is expected to rise.

The USA stock market drop yesterday was not cause by an investor sell off. It was orchestrated by hedge funds causing a triple bottom.
The DJI low was just 91 above the lowest recent sell off.
S&P low was just 14 above the lowest recent sell off.
He NASDAC low was just 5 above the lowest recent sell off.
This is scary that someone is dialing in the requirement that low for several markets not to break the previous lows in those markets. Is a mass exodus from equities forcing this? Not much is going into gold since there is very little gold (two full swimming pools worth) being bid up by a few dealers. The world’s fear is caused by European socialists. The sooner they cut Greece out of the EURO and then the common market, the better. That would send a message that being a part of Europe requires some responsibility. Europe, Asia, and SA have a way to fall before they double bottom. Look back to mid July when we warned this would happen soon.

The Philadelphia news was a seasonal hot weather, market turmoil, and vacation related slowdown not a recession indicator. The higher inflation was a bounce off of a low outlier the last time.

Obama’s “idle and vicious” are erupting on the streets of America. This happened before the recent “idle and vicious” eruptions in Great Britain. The video, shot in May, shows a woman being attacked in broad daylight as she is walking outside Philadelphia City Hall. A pack of teenage girls attacks her from behind and slams her into the ground, kicking and beating her. Obama is cutting US national defense and federal civil defense funds for police and fire protection jobs while hiring his “chosen people,” to be the federal pat down people at airports. Some call this Obama style racism. During the French “Reign of Terror” the leftists created jobs for the “idle and vicious” by first killing current employees to create vacancies and then filling the vacancies with the new leftists. Obama is just selectively eliminating the jobs of existing employees and then hiring his “chosen people.” It is simple but effective leftist style redistribution of wealth.
http://www.foxnews.com/us/2011/08/17/new-video-surfaces-showing-unprovoked-attack-by-philadelphia-teens/


World Markets:
The world’s fear is caused by European socialists. The sooner they cut Greece out of the EURO and then the common market, the better. That would send a message that being a part of Europe requires some responsibility. If they are not thrown out the European socialists will not get the message.

China’s local governments are struggling to repay their debt and the real-estate bubble bursting may leave banks bankrupt. While valuations on Chinese banks have dropped to the lowest levels since October 2008, Vontobel Asset Management Inc.’s Rajiv Jain said the shares would fall further because the Chinese banking system leverage is still too high and earnings are disappointing.

46% of Spanish youth are now unemployed. Leftist gays to engage in kissing that is synchronized with the Pope’s car as he passes through Madrid when he visits. Of course that will only lead to more hatred of gays by people around the world who respect the Vatican’s policies. The leftist gays infiltrate political and church groups to undermine and assume control. The Republican Log Cabin group is socialist stronghold and a farce. They often succeed as they convert ELCA and other left wing oriented groups to a socialist Obama type agenda. The ELCA has since been losing hundreds of congregations who do not support the gay-socialist agenda over the Bible.

Indian stocks dropped to the lowest in more than 14 months led by banks and software services companies. Rioting is occurring in the streets of India over the corruption in the system of socialism where the politicians require Indian people buy their government jobs and supplement their low government pay with bribes.

It appears James Murdoch and all of his executives knew when the papers were engaged in illegal hacking. Does Murdoch blackmail members of Parliament too? The U.K.’s Guardian destroyed Britain’s best-selling Sunday newspaper by exposing that the Rupert Murdochs tabloid hacked a murder victim’s voicemail and other things.

Germany’s annual growth rate has slowed to 0.5% now. Germany and France cannot afford to bail out Greece, Portugal, Italy, and Spain. We hope they will force the troubled countries off the Euro until they meet the original limited deficit spending requirements that were in place when the EURO was established. Remember Germany was the first to violate the GDP debt limit requirement because they were bailing out East Germany. France was next and then the EU discipline broke down completely. It appears the German market may double bottom today.
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart1:symbol=^gdaxi;range=1m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

The Swiss government and central bank talks about a possible target for the Swiss franc to halt its gains has failed and the Swiss franc is rising again. The Swiss market has not yet double bottomed and has a way to go.
http://finance.yahoo.com/echarts?s=^SSMI+Interactive#chart2:symbol=^ssmi;range=1m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Emerging markets also will fall further before they double bottom.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#symbol=%5EBVSP;range=
http://finance.yahoo.com/echarts?s=000001.SS+Interactive#chart1:symbol=000001.ss;range=1m;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy-
Last week
MBA Mortgage Index 08/06 rose +21.7% from +7.1% last month. Excellent
Wholesale Inventories Jun increased 0.6% down from 1.8% last month. Improved
Treasury Budget deficit in Jul -$129.4B less than last month -$165.0B. Great reduction in deficit spending
Initial Claims 08/06 395K down from 400K ..very good
Continuing Claims 7/30 3688K down from 3730K ..very good
Trade Balance Jun -$53.1B up from -$50.2B ..we continue to keep the world humming
Retail Sales up in Jul 0.5% from a 0.1% increase in June.
Retail Sales ex-auto Jul up 0.5% 0.from no improvement in June.
Mich Sentiment Aug 54.9 way down from a low 63.7 in July
Empire NY Manufacturing Aug -7.70 vs -3.76 last month. Getting almost twice as bad
Net Long-Term TIC Flows Jun $3.7B a decline from $23.6B last month showing foreign investment dropping.
NAHB Housing Market Index Aug 15 stabilized at last at 15 Some good housing news for a change.
Housing Starts Jul declined to 604K from 629K.. Very good, there are too many already
Building Permits Jul declined to 597K from 624K.. Very good, same reason
Export Prices ex-ag. Jul increased 0.2% from nothing last month. Demand is up, that’s good
Import Prices ex-oil Jul up 0.2% after declining -0.1% last month. Imports cost more then we buy less
Industrial Production Jul up 0.9% from 0.2% last month. Excellent.
Capacity Utilization Jul 77.5% up from 76.7% last month is consistent with more industrial production i.e. good
MBA Mortgage Index 08/13 improved again by+4.1% after improving +21.7% last month.
Producer Price Index Jul was up a normal 0.2% after deflating -0.4% last month
Core PPI Jul remained a normal 0.4% the same as last month
Crude Inventories 08/13 rose 4.233M after falling -5.225M last week.

Yesterday
Initial Claims 08/13 up again to 408K from 395K last week. Over 400 is bad
Continuing Claims 08/6 up to 3702K from 3688K last week.
CPI Jul 0.5% up from -0.2% last month. Just an outlier oil surge
Core CPI Jul 0.2% down from 0.3% last week. Just fine
Existing Home Sales Jul 4.67M flat from 4.77M. bottomed out
Philadelphia Fed Aug -30.7 from 3.20 This is an outlier or an Obama screw-up report
Leading Indicators Jul 0.5% up from 0.3% . very good

Market Outlook August 19, 2011
Have no fear if USA markets hold this triple low we have hit. But this is precarious because Europe, Asia, and SA have several percent to fall just to double bottom. The foreign markets could but should not spook Americans when the world double bottoms and it would not be good for Americans to get spooked right now.

The overhang of Obama liar loans to his chosen people is the greatest danger to the American economy. The overhang of European debt combined with Obama liar loans to his chosen people is the greatest threat to world stability at this time. Together they could cause another liquidity meltdown. As things get worse Obama’s vicious and idle socialists in America and vicious and idle socialists in Europe are likely to riot and destroy the property of the sober and industrious workers who are now virtual slaves bearing the entire weight of government taxation.

The difference between yields on 10- year notes and Treasury Inflation Protected Securities again hit a new low. That narrowing gap indicates the threat of inflation is getting very low. When it inverts (long-term drops below short term) that says we are in a deflationary period. Gold buyers are going to be taken to the cleaners when investors face the reality that Japan type deflation has arrived, not inflation. Of course many socialist central banks just bought gold. Socialist banks always make that mistake and will sell as gold plummets.

Relatively speaking housing is beginning to look better. It is good for new construction to decline until the overburden of foreclosed ‘Obama liar loan” houses is depleted. We expect housing stocks will actually begin to do well since the banks are finally dealing with Obama and Barney Frank’s “liar loans”. Banks like BAC are bull dozing away some of the houses Obama’s “chosen people” got with their Obama “liar loans” and gutted plumbing, wiring and fixtures before abandoning them in foreclosure. Obama liars will costs some banks many $billions.

You can see the VIX confirmed the capitulation of a third bounce yesterday. http://finance.yahoo.com/q/bc?s=^VIX&t=3m&l=on&z=m&q=l&c=

We expect a normal advance now of up to 50% of the recent decline. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=6m&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

Recovery the past two years was one of Obama’s big lies as he continued to divide Americans and destroy the American economy with socialism and corruption. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were down last night. China down –1%, Hong Kong down –3.1%, India down –2, and Japan down –2.5%. Seoul hit a new low dropping 6.2%.

European markets are down today by about –0.61% to –3.6% half way through their day.

American markets futures are down about –1.4 to –2% at 7:30 AM EST
We expect US market will test yesterday’s lows and advance. If a new low is hit today there could be a world panic and many state and municipal bankruptcies caused by a liquidity freeze of enormous scale this time after Obama flushed the American treasury down the toilet bowls of his political constituency with his failed trickle up communist theory.

We expect little net recovery or stock market gain this year and next year unless free Obamacare for Obama’s leisure class is declared unconstitutional and his Banking regulations are cut way back closer to the Glass-Steagall Banking Act of 1933. Obama thinks welfare is much better for the “Obama leisure class” than Texas jobs in the fast food industry where there is nothing to rip off and no fringe benefits like copper and fixtures to remove.