If the Obama-Holder regime is unstoppable in November we predict that by early next year the stock markets will set lows not seen since 1996.

Atheistic socialist governments are:
1) Incompetent by definition because they hate competition. Those who hate competition stupidly believe a profit is nothing more than the money the rich steal regularly from the poor rather than the value generated by free enterprise.
2) Corrupt because that is the only way to make money when people cannot be paid for performance
3) Have delusions of grandeur and become vicious psychopaths toward anyone who threatens their power.
4) Christian Socialists are compassionate but are generally airheads and just too stupid to prevent atheistic psychopathic socialists from taking power.

What is a community activist? Basically he is a cool ignorant airhead who hates real jobs and never worked up a sweat in his life. Obama wastes our shrinking investment capital expanding food stamp programs and now has 50% of all Americans (his constituents) on housing allowances.

Before this November we predict that if airhead socialist Obama even seems unstoppable the markets will test last year’s and possibly 2008's lows. Election of airhead Obama would mean that socialist entitlements will be unstoppable and competent people will see the absolute futility of working at all, much less working hard and will try to find safe haven countries to flee to and to hide their wealth until world socialism collapses again. Collapse of socialism in the West could take 50 to 70 years, another whole generation of wandering in the wilderness until the entire generation of socialists has been buried. That is the solution Ayn Rand’s proposed in “Atlas shrugged” which she learned from experience as a refugee from the USSR.

The US economy will hit a wall even if Obama loses because the lame duck airhead socialists will let taxes rise again just as military force cutbacks accelerate and dump hundreds of thousand warriors on to the streets.

New claims for unemployment benefits rose last week for the fourth straight week and heighten concerns the American labor market recovery is softening further. Also, the latest figures show manufacturing expansion in the US Midwest cooled down sharply in May.

Gross Domestic Product (GDP) is the broadest measure of economic activity. Annualized quarterly percent changes in GDP reflect the growth rate of total economic output. The US economy grew at an annual rate of 1.9 percent in the first three months of the year, which is nothing more than the inflation rate. In addition to the GDP figures, there are GDP deflators, which measure the change in prices in total GDP and for each component. That means America has been going absolutely nowhere since the Obama-Holden regime was elected. So while the GDP first quarter estimate of GDP growth is 1.9% the GDP deflator is 1.7$ so net annual growth rate is only 0.2% which is only one tenth of what Wall Street analysts are telling people.

The first response now of hard working people was to go into cash even though (and because) interest rates are effectively zero. When credit collapses (as it does with socialist liar loans and grants to Obama-Holden indigent and corrupt supporters) cash first becomes king. The socialists will confiscate gold and they have a record of every legal purchase of bullion, coins and jewelry that has been made in America. Only gold purchased in small unregulated republics or illegally will be safe from confiscation. Ultimately many people suspected of illegal hoarding will have their homes looted and if contraband is found they will flee or die anonymously. This happened in Europe 70 years ago and is why so many Europeans fled to the banana republics of South and Central America.

Overpriced Facebook (without a profit) tumbled. The problem was the padding of the pockets of those like socialists George Soros looting the investors. It is a good product that has had its reputation destroyed and may no longer even have any credible management. The biggest risk is that the founders are already billionaires and can now retire and let the company sink into oblivion.

Overpriced Apple (without a leader) will likely be down 28% by October after the quarterly report, and down 50% or more by this time next year. That is because MSNBC rip-off commentators such as Jim Cramer did not report revenue and profit this latest quarter compared to the best quarter last year. They compared to a poor quarter last year before the new product release last year. We base these levels on resistance areas and gaps in price.

Europe is now feeling the Obama Great Depression that Obama announced to blame President Bush and to frighten his ignorant and airhead followers away from free enterprise. Obama said that our free enterprise system was a failure. He tried to say Bush had created a great depression. With real Obama job shrinkage now estimated at 16% and getting worse, Obama creates phony USSR style data to say US unemployment is under 9%. Oil prices decline as the US and the rest of the world shrinks due to Obama type socialist redistribution of wealth from the competent to the incompetent… from thinkers and workers to airhead Obama supporters. It is a double killer since the incompetent have no incentive to learn or work and the competent now have no incentive to invest or report a positive income. So the lazy drop out of school and the hard working give up on socialism and spend their money traveling the world instead of investing or showing a profit. Both the top and the bottom essentially withdraw from the labor pool leaving the people in the middle in a crisis with home values shrinking.

The Rasmussen Reports daily Presidential Tracking Poll for Sunday shows Mitt Romney picking up 48% of the vote, while President Obama attracts 44%. Three percent (3%) prefer some other candidate, and five percent (5%) are undecided.
http://www.rasmussenreports.com/public_content


World market this week

The socialists have undermined the free Europe that America had established after WWII. Europe is once again decaying rapidly into the chaos of Nationalist vs. Internationalist socialist rivalry of the Hitler-Stalin era. The idiot socialist also run the American government today so there is no longer an America to rescue Europe from the idiot European socialists. It took the USSR 60 years to implode. Free Europe was re-established in 1945 and it will likely be in collapse by 2015 at the current rate or after just 70 years. With socialists running America since 2008 will likely collapse the American economy by 2018 (just 10 years) at Obama’s $1.5+ trillion annual rate of wealth redistribution. Obama’s banana republic of America airheads will want to end term limits for Obama to be president for life. That is when intelligent Americans will flee for their lives.

Japan’s Topix fell below the lowest level seen during the 2008-2009 financial crisis. The gauge has fallen more than 20 percent from this year’s high on March 27, entering a so-called bear market.

Oil fell to the lowest price in eight months on signs of an economic slowdown in the U.S. and China. London’s Brent crude dropped from the lowest close in one and a half years. Brent crude dropped below $100 a barrel for the first time in eight months indicating the world economy is contracting sharply as entrepreneurs are shut down by corrupt socialism.

The world's economic outlook darkened on Friday as reports showed U.S. employment growth slowing sharply, Chinese factory output is barely growing and European manufacturing falling deeper into malaise.

The euro lost 0.3 percent to $1.24 as of 11:55 a.m. in Tokyo after touching $1.2288 on June 1, the lowest since July 1, 2010. The world economy is heading for its third straight mid-year lull as manufacturing output continues to shrink in Europe and communist China. China pretends to have a growing economy yet has shrinking imports of all raw materials and no growth in electrical or other energy use. Clearly China is falsifying data just as the USSR did even as in the USSR, America provided free grain to prevent starvation. America is now quietly feeding the North Koreans again even though they launched a missile (it failed) capable of striking America. Italy’s joblessness rose to the highest in 12 years amid a deepening slump in Europe.

In Athens and Spain it is already too late for them because the problem of “ runs on their banks” has already begun. Mario Draghi, president of the European Central Bank is no fool and warned (last week) that the structure of the euro zone had already become “unsustainable” and criticized socialist political leaders. “The configuration (of socialist government expansion) we had for 10 years, which was considered sustainable, has been shown now to be unsustainable unless further steps are undertaken,” Mr. Draghi told the European Parliament in Brussels. The problem with socialist welfare states is that government provides the jobs and socialist jobs have no value because they are “socialist contrived” work for which government employees make believe they work. Only very ignorant airhead Obama and his supporters have no clue whatsoever because they do not understan the collapse of the USSR and East Germany in 1989.

Emerging markets just gave a sell signal and are getting worse.

http://finance.yahoo.com/echarts?s=%5EMERV+Interactive#symbol=^merv;range=2y;compare=;indicator=ema(100,200)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;


American Economy
Last Week

Case-Shiller 20-city Index Mar –2.6% a drop after –3.5% last month.

Consumer Confidence in May was down to 64.9 from 69.2 last month, a huge drop that looks like an error

MBA Mortgage Index 05/26 -1.3% plunged again from 3.8%

Pending Home Sales Apr -5.5% collapsed from 4.1%

Challenger Job Cuts May 66.grew from 11.2% -bad

ADP Employment Change May 127K vs 119K corrected for Obama manipulation-very low

Initial Claims 05/26 386K up from 370K corrected for Obama manipulation-very bad

Continuing Claims 05/19 3260K no change 3260K corrected for Obama manipulation-no change

GDP - Second Estimate Q1 1.9% 1down from 2.2% -very bad

GDP Deflator - Second Estimate Q1 1.7% 1up from 1.5% wipes out the expansion.

Chicago PMI for May was52.7 down from 56.2 shows sharp contraction in manufacturing.

Crude Inventories 05/26 2.213M vs. 0.883M says supply is increasing and oil prices can continue to fall.

Nonfarm Payrolls May 69K down from 115K

Nonfarm Private Payrolls May 82K down from 130K even after 33K Obama manipulation

Unemployment Rate May 8.2% up from 8.1%

Hourly Earnings May 0.1% up from 0.0% even after 0.1% Obama manipulation

Average Workweek May 34.4 down from 34.5

Personal Income Apr 0.2% 0down from 0.4% even after 0.1% Obama manipulation

Personal Spending Apr 0.3% 0constant 0.3% even after +0.1% Obama manipulation

PCE Prices - Core April 0.1% 0.2% no change 0.2% negates the income increase

ISM Index May 53.5 down from 54.8 manufacturing slow down

Construction Spending Apr 0.3% no change.

Today

Factory Orders Apr prior -1.5% revised to –1.9%. Obama degraded last months report by 0.4% so that he can report today’s number 0.4% better than it is and his airhead supporters will never figure it out.

This Week

Jun 5 10:00 AM ISM Services May prior 53.5 -

Jun 6 7:00 AM MBA Mortgage Index 06/02 prior -1.3% -

Jun 6 8:30 AM Productivity-Rev. Q1 prior -0.5% -

Jun 6 8:30 AM Unit Labor Costs-Rev prior -2.0% -

Jun 6 10:30 AM Crude Inventories 06/02 prior 2.213M -

Jun 7 8:30 AM Initial Claims 06/02 - prior 383K -

Jun 7 8:30 AM Continuing Claims 05/26 prior 3242K -

Jun 7 3:00 PM Consumer Credit Apr prior $21.4B -

Jun 8 8:30 AM Trade Balance Apr prior -$51.8B -

Jun 8 10:00 AM Wholesale Inventories Apr prior 0.3%


Market outlook June 4, 2012

We said the DJI was no longer a safe haven. It wiped out its 2012 advance as employers added the fewest number of American workers in a year. The unemployment rate rose while manufacturing in the world declined

The only hope now is if Americans will eject Obama in November. Obama would make his college grades public if he did not think it would not prove he is the fool people think he is.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=ytd;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The DOW Industrial’s confirmed the Dow Rails sell signal a few weeks ago which means there was never a confirmed DOW buy signal since the decline began on August 2, of 2011. The Dow Theory Industrials and Rails sell signal of August 2, 2011 still holds.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=5y;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

On a quarterly cycle basis (look at 6 months), on an annual cycle basis (look 2009 to today) and on an economic business cycle basis (up to 20 + years) it appears we have had head and shoulders sell signals. Another immediate 15% drop is likely to quickly occur if the Obama-Holder regime is re-elected. Recently they have cut off data below 2003 so you can no longer see the 20+ business cycle collapse.

http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=2y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined

The VIX says the market volatility has a long way to go up to 40 before the market begins to bottom. http://finance.yahoo.com/q/bc?s=%5EVIX&t=2y&l=on&z=m&q=l&c=

Baltic Dry Index has collapsed again after collapsing 90% already since the Obama-Holder regime was elected. This is saying world trade by boat has collapsed under Obama.
http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:

Asian markets were down sharply last night. China down –2.7%, Hong Kong down –2%, Singapore down –1.7%, Taiwan down –3%, Korean Market down –2.8$, Japan down –1.7 %.

European markets were plummeting half way through their day in a range of 0% to –4.5% for Greece.

American market futures are down about –0.2% in after hour trading at 7 AM EST.