Obama to start down austerity path as economy falters and as his racist trickle-up stimulation plan falls flat on its face.

The Tanzanian Shilling heads for new high as Tanzanian Central Bank Sells American Dollars. Obama to start down austerity path just as economy falters and as his racist trickle-up stimulation plan falls flat on its face. Corporations in fear of socialist confiscation refuse to have anything to do with Obama’s hair-brained socialist ideas. The federal government looks to be getting out of the business of trying to spur the economy just as the U.S. expansion shows increasing signs of faltering. Iran offers Obama advice on foreign policy and Somalia worries about loss of food aid if Obama environmentalists force farmers to stop fertilizing crops. The enviral-mental-cases have just come out officially against windmills after condemning nuclear, hydrocarbon and fracked hydrocarbon energy sources. However bio fuels like Obama bullshit are still very popular with leftist hair-brained groups.


World Markets:
Stocks in Europe fell to 10-month low, Asia down sharply and the Franc and Yen hit highs. Italy, Spain, and Greece are having more difficulty selling their government bonds.

More than 50% of the European companies in the Stoxx Europe 600 Index reporting earnings are missing analysts’ projections. That’s the most since 2006. The benchmark gauge lost 3.1 in July, the largest decline at the start of an earnings season since 2010.

Banks in the biggest emerging markets are losing the confidence of investors as loans turn sour after a two-year credit binge.

Spain’s communist People’s Party threatens to oust the Socialist Party in new election.

Emerging markets ready to plummet. Brazil http://finance.yahoo.com/q/ta?s=%5EBVSP&t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=

Asian markets ready to plummet. China
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SSEC
India
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^BSESN

Europe’s Swiss market is now plummeting down –3.3% at 8:30 AM EST today. Swiss
http://finance.yahoo.com/q/ta?t=5y&l=on&z=l&q=l&p=e100%2Ce200&a=&c=&s=^SSMI

Past Week

Initial Claims 07/23 398K down from 418K last week
Continuing Claims 07/16 3703K up from 3698K last week
Pending Home Sales June 2.4% down from 8.2% last week
GDP-Adv. Q2 up only 1.3% and down from the previous estimate of 1.9%
GDP Deflator Q2 2.3% which means without inflation the economy contracted 0.3% the inflation last quarter was 2.0% which means without inflation the economy contracted only 0.1% last time. Therefore the economic contraction accelerated from 0.1% to 0.3%.
Employment Cost Index Q2 rose to be 0.7% from 0.6% last quarter.
Chicago PMI Jul shrank to 58.8 from 61.1 reported last time.
Michigan Sentiment - Final Jul 63.7 continued show shrinkage of confidence from week level 63.8 last time.
IS Manufacturing Index Jul declined to 50.9 from 55.3 last month.
Construction Spending Jun rose 0.2% after declining -0.6% last month

This week
Aug 2 8:30 AM Personal Income Jun
Aug 2 8:30 AM Personal Spending Jun
Aug 2 8:30 AM PCE Prices - Core Jun
Aug 2 3:00 PM Auto Sales Aug
Aug 2 3:00 PM Truck Sales Aug
Aug 3 7:00 AM MBA Mortgage Index 07/30
Aug 3 7:30 AM Challenger Job Cuts Jul
Aug 3 8:15 AM ADP Employment Change Jul
Aug 3 10:00 AM Factory Orders Jun
Aug 3 10:00 AM ISM Services Jul
Aug 3 10:30 AM Crude Inventories 07/30
Aug 4 8:30 AM Initial Claims 07/30
Aug 4 8:30 AM Continuing Claims 07/23
Aug 5 8:30 AM Nonfarm Payrolls Jul
Aug 5 8:30 AM Nonfarm Private Payrolls Jul
Aug 5 8:30 AM Unemployment Rate Jul
Aug 5 8:30 AM Hourly Earnings Jul
Aug 5 8:30 AM Average Workweek Jul
Aug 5 3:00 PM Consumer Credit Jun

This Week

Market Outlook August 2, 2011

Future of the world is uncertain under Obama leadership vacuum.
Well the bargains may now continue as the recession is beginning to grip emerging markets and Europe. You can see the VIX peaked a little low showing fear is falling. It normally peaks at 30 or 40 before a crisis is over.
http://finance.yahoo.com/q/bc?s=^VIX&t=1y&l=on&z=m&q=l&c=


The last rally now looks even more like the second shoulder of a classic head-and-shoulders sell signal. If that is the case there could be a sharp sell off. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=1y&l=on&z=l&q=l&p=e50%2Ce100&a=&c=

Recovery is one of Obama’s big lies as he continues to divide America. Click on the 5yr chart and see full effect of the slowdown in world dry shipments. Now most of his supporters are quietly admitting Obama has done nothing as president to help the economy. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Asian Stocks were down sharply last night. China down -0.9%, Hong Kong down -1.1%, India down –1.1%, Seoul down –2.4%, and Japan down -1.2%.

European markets are down sharply this morning in a range of about –0.7% to –3.3% half way through their day.

American markets futures are down today about –0.8% this morning at 8:30 AM EST