President Barrack Obama plans to flood the economy with new money and turn the SBA into another liar loan outlet for his “chosen people”

President Barrack Obama plans to flood the economy with new money and turn the Small Business Administration into another liar loan outlet for his “chosen people” after succeeding so well in using liar loans to transfer wealth from the housing and banking industry to his “chosen people”. His “chosen people” will be able to get “business loans” insured and without questions asked. President Barrack Obama told an audience in rural Iowa that the U.S. economy will be “stronger than before” as he sought to regain the initiative on the economic debate that likely will dominate the 2012 campaign. “It is going to be driven by folks here in Iowa.”

But Texas Governor Perry obviously questions whether the warm feeling we get from Obama peeing his ignorant homilies on the legs of hard working Americans has any economic benefit.
“The president of the United States has conducted an experiment on the American economy for almost the last three years, and it has gone tragically wrong,” Perry said yesterday in Cedar Rapids, Iowa. Perry said any move by Federal Reserve Chairman Ben S. Bernanke to act on stimulus measures before the 2012 election would be “almost treasonous.”
President Obama’s spokesmen immediately struck back and criticized Governor Perry and said all the job creation in Texas was in “Mac Donald’s” type jobs which are beneath the dignity of Obama and his “chosen people.”

The daily Gallup poll that tracks presidential approval ratings showed Monday that President Obama's fell to 39 percent. Democratic pollster Doug Schoen said on Monday's Power Play Live that at 39 percent, "He's unelectable." Last week Obama threaten to withhold the salary of American warriors before he cuts the benefits to his vicious and idle “chosen people.”

Government figures show that global demand for U.S. stocks, bonds and other financial assets weakened in June from a month earlier when Obama vetoed the first of six plans Congress put forth for raising the debt limit. There were 3 bipartisan and 3 “Republican only supported” proposals that Obama rejected. In other words Republicans supported six plans, democrats in Congress supported three bi-partisan plans but Obama rejected them because he was concerned about their impact on his campaign in 2012. The consequence of Obama’s narcissism and selfishness was the cut in America’s S&P rating.

Obama is a curse not just on America. He is a curse on the entire planet. After Obama throws billions to the vicious and idle ACORN in America, other nasty, vicious, and idle community activists in Britain who like Obama and who already have wealth redistributed under socialism went rioting in Britain giving welfare societies around the world a black eye.

The economic crisis is the result of the contagion of socialism that corrupts all economic and social institutions in favor of the vicious and idle who form the leisure class of socialist societies. When the viicous and idle leisure class becomes a 51% majority, that is when the government breaks down and tyrants rise up to rule demanding changes to the Constitution so that they have no term limits and dictatorial powers like Obama’s hero in Venezuela did. Americans have watched the violence of the vicious and idle in Greece and Britain and are beginning to see the future consequences of Obama’s policies. Obama is undermining American liberties while destroying the American economy by replacing free enterprise with ignorant-socialist-Obama-Czars. Obama's stumbling bumbling policies will soon be wrecking the environment too with high maintenance windmills and toxic worn out car batteries.

World Markets:
Sensex India’s benchmark stock index advanced for the first time in four days as some investors judged recent declines excessive. 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?

Germany’s annual growth rate has slowed to 0.5% now. Germany and France cannot afford to bail out Greece, Portugal, Italy, and Spain. Perhaps 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, “A transfer union where Germany pays for the debt of other countries, but has no access to their tax revenues, would probably be the worst outcome for Germany’s rating,” said a Munich.

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.



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
Monday
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.

Today
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

This week
Aug 17 7:00 AM MBA Mortgage Index 08/13
Aug 17 8:30 AM PPI Jul
Aug 17 8:30 AM Core PPI Jul
Aug 17 10:30 AM Crude Inventories 08/13
Aug 18 8:30 AM Initial Claims 08/13
Aug 18 8:30 AM Continuing Claims 08/6
Aug 18 8:30 AM CPI Jul
Aug 18 8:30 AM Core CPI Jul
Aug 18 10:00 AM Existing Home Sales Jul
Aug 18 10:00 AM Philadelphia Fed Aug
Aug 18 10:00 AM Leading Indicators Jul

Market Outlook August 17, 2011
The difference between yields on 10- year notes and Treasury Inflation Protected Securities reached a one-week low before government reports today and tomorrow that economists said will show inflation in check. That gap indicates the threat of inflation is 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.

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. Unfortunately Obama’s chosen people don’t just default, their homes often mysteriously get gutted of copper plumbing and copper wire making the homes worthless. Obama thinks it must be some coincidence and revealing this problem shows a lack of diversity training in the media. We expect housing stocks will actually begin to do well as the banks are finally dealing with Obama’s and Barney Frank’s “liar loans” that freed up housing for Obama’s “chosen people” to wreck.

An America without liar-Obama would be well into recovery. But even with Obama… things will appear to improve because Obama screwed things up extremely bad last year with continued liar-mortgages to his chosen few. The end to the home-buyer tax break hurt things badly a year ago. Therefore relatively speaking things will look much better in housing for a few months. The auto industry will look a lot worse though because liar-Obama last year threw money at that industry to fool people into thinking his socialism helped the auto industry when all he really did was bail out the unions that backed his election campaign.

You can see the VIX confirmed the capitulation and smaller second bounce and is now subsiding. http://finance.yahoo.com/q/bc?s=^VIX&t=6m&l=on&z=m&q=l&c=

We expect a normal advance now of up to 50% of the recent decline. Last fall the market almost doubled what it lost in the May 2010 panic. See:
http://finance.yahoo.com/q/ta?s=^NYA&t=5d&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. Click on the 5yr chart and see full effect of the slowdown in world dry shipments which shows Obama did nothing at all but destroy hope by forcing Obamacare for his indigent leisure class down the throats of working Americans. See:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were mixed last night. China down –0.3%, Hong Kong up 0.4%, India up 0.7, Seoul up 0.7%, and Japan down -0.6%.

European markets are down today by about -1.2% to +0.5% half way through their day.

American markets futures are mixed about +0.1% at 6:00 AM EST

Still we expect little net 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 to remove.