Obama will change the name of the Department of Energy to the Obama Department of American Poverty. Obama killed the much needed oil pipeline from Ca

Obama will change the name of the Department of Energy to the Obama Department of American Poverty. Obama killed the much needed oil pipeline from Canada and over 2000 jobs just raise US cost of energy again so that Solyndra doesn’t look like such a corrupt and stupid campaign funding scheme. Solyndra was buying Chinese solar panels and assembling them in America pretending that Solyndra was a high-tech manufacturer. The US Poverty level reached a record high of 16% this week under Obama. 20% of single men over 25 yr. old are living at home. There are more homeless people in America since the Socialists won with Obama.

Gold and silver have peaked and volume of trading is fast falling. After reaching a high under Jimmy Carter gold fell 70% and silver fell 84% and did not begin to recover for 29 years. Obama is a lot dumber than Jimmy was. See commodity prices:
http://www.tfc-charts.w2d.com/chart/ZG/C0

http://www.tfc-charts.w2d.com/chart/SV_/C0


Holder, who is Obama’s Attorney General, and holds the highest legal position in America admits his agency did the Mexican gun running that was supposed to create a national outcry against American gun owners and trigger gun controls on Americans in violation of the US Constitution. One American border guard died as a result of that Obama “personally approved” "fast and furious" gun running.

The global operators of supertankers, headed for their biggest weekly stock price gain since 1998 on signs of stronger demand to charter the worlds crude-oil carriers as anticipation grow that Obama’s lack of an intelligent energy policy will raise oil prices considerably in the coming winter months.

Obama’s & Warren Buffet’s U.S. wind turbine BS will “fall off a cliff” unless lawmakers extend tax credits supporting the market beyond 2012, said Ditlev Engel, chief executive officer of Vestas Wind Systems A/S, the biggest seller of Chinese made windmills. That is right, unless the American taxpayer pays for them nobody buys them because they do not even pay for themselves in the energy needed to produce them. Obama wastes more energy building windmills and solar panels than most will produce in their limited life. They fail in less than half the lifetime they produce and that maintenance/failure rate is how Obama environmentalist lies to fool the idiot socialist administration.

“The solar PV market has certainly reached a point where some illusions are meeting reality,” Wacker Chief Executive Officer Rudolf Staudigl told investors in an Oct. 28 conference call. “About the length of the downturn in polysilicon, I simply cannot answer.” said Robert Schramm- Fuchs and Shai Hill, analysts at Macquarie Group Ltd. Polysilicon has plunged 93 percent to $33 a kilogram from $475 three years ago as the industry cannot sell the panels even with Obama taxpayer subsidies and the taxpayer money spent on Solyndra and other companies is used to funnel money into the campaigns of socialists who now own over 90% of the US national news media.

GM already owes $10Billion to the union pensions since the bailout. GE is another Solyndra type scandal for Obama to raise campaign funds.

World markets
EU finally makes a list of countries to be ejected from the 17-nation EURO bloc due to national immaturity and childlike socialist greed and selfishness. German and French politicians are already creating exit plans for the weakest members.

The European Central Bank stepped in and bought Italy’s debt when Italy sold the $5B Euro debt today. That has not sunk in yet. When it sinks in, investors will panic and try to sell their Italian bonds to the ECB forcing the ECB to stop supporting Italy. When the ECB stops buying the Italian bonds the investors who bought in will get a 40% haircut. They are mostly retired people living on their “safe” government bond income! Obama economic ignorance and socialist ideas are setting the USA up for the same crisis the EU is having. If this contagion spreads Japan will fall, the USA will fall and China will lose all the currency it is hoarding and go bankrupt too. All the people owning gold will lose too because that is a depression not inflation. Cash could become king again.

Unlike the USA the EU socialists decided to bag the private investors with a 40% German haircut on Greek debt. That was a big mistake. That has set the stage for the withdrawal of private funds from the support of the EURO. In the USA the problem was not sovereign debt but the Democrat-Socialists giving away houses to people who could not afford the mortgage payments. Then the Socialist crony thieves like Soros and others started using private funds to speculate and give themselves $millions before their Ponzi scheme failed. American Social Security and Obama Care are also Ponzi schemes giving benefits now based on future earning power that will not exist unless the people on welfare come to realize they need to get a real life.

Oil hoarding is getting prices rising again. Peanut butter hoarding has tripled that price as USA crop damage takes a toll. A drought also hurt the USA corn crop this year. Selective shortages were also a characteristic of the “inept Jimmy Carter” years. It looks like Obama now will follow the Jimmy Carter defeat only Obama is a crook who will end up being a $billionaire. Obama can expect to be the first ex-president to serve a prison sentence.

China bounced. http://finance.yahoo.com/echarts?s=000001.SS+Interactive#chart1:symbol=000001.ss;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Germany rises: Choose 2 or 5 years
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart1:symbol=^gdaxi;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

The Swiss government and central bank has a target for the Swiss franc to halt its rise. Choose 2 or 5 years http://finance.yahoo.com/echarts?s=%5ESSMI+Interactive#chart1:symbol=^ssmi;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Emerging markets show resiliency.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined


American Economy

Consumer Credit Sep grew 7.4B after declining 9.4B last month, good news since consumers are feeling better.
MBA Mortgage Index 11/05 +10.3% a big increase over the previous +0.2% meaning more houses to be sold.
Sales are up 15% year over year while inventories are up only 12%. That is great news.
Wholesale Inventories Sep down -0.1much better than the 0.4% last month point to need for higher production.
Crude Inventories 11/05 -1.370M down from 1.826M pointing to higher gas prices.

Yesterday
Initial Claims 11/05 390K continues to decline: from 397K good news
Continuing Claims 10/29 3615K down again 3683K
Export Prices ex-ag. Oct -1.5% down is good from 0.3%
Import Prices ex-oil Oct -0.2% low import hurts USA 0.2%
Trade Balance Sep -$43.1B slight improvement from -$45.6B
Treasury Budget Oct -$98.5 deficit still way too high though down from -$140.4B

This Week
Nov 11 9:55 AM Mich Sentiment Nov

Market Outlook November 11 2011
More than $1 trillion was erased from the value of global equities yesterday, with the S&P 500 sliding 3.7 percent. No one seems to worry about the fact that Japan has become the greatest per person debtor in the world and has got in that precarious situation by borrowing from its own people who could lose all his or her savings. The volume yesterday was relatively low indicating very little selling pressure but the market makers simply priced the market down 2% at the start where it stayed until about 1 PM and then drifted down about another 1.5%.

The high VIX shot up to 36 yesterday and says investor’s fears are high. That correlates more with a continuing bull market because complacency has not set in. We are now climbing the well-known bull market wall of fear. There is still just not much short seller fear at this point. We have not had the shorts squeezed out of the market yet. Look how low the VIX has to go before the market top is hit! A level as low as 20 would indicate complacency and the end of the bull market.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=m&q=l&c=

We advanced over 60% of the total recent decline and predict we could possibly have as much as 90% recovery. But realize that as the upside potential is approached, then the downside risk exceeds the upside potential.
See:
http://finance.yahoo.com/echarts?s=^NYA+Interactive#chart3:symbol=^nya;range=5y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Since September, international trade has fallen. China must be hurting badly. However today it looks like the index may have stopped declining. We need to watch trade to see if the recovery takes hold again. See 1yr chart. You may need to cut and paste this in:
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND

Stock market update:
Asian Stocks were up last night. China up 0.1%, Hong Kong up 0.9%, India down –1%, Taiwan up 0.8% and Japan up 0.2%.

European markets are up today in a range 0.7% to 1.7 % half way through their day.

American market futures are up about 0.7% at 8 AM EST. They are an unreliable predictor.

If cash becomes king it will be because the world today runs on credit not paper money. If the credit system goes bust there will not be enough cash to buy things and prices will fall. Nobody will want gold… they will want cash. That is why all the credit Bernanke has put into the system does not have the same effect as printing money. It is only credit that could dry up in a week.