While cash, not stocks, is a better choice, silver and gold will be seen as safe havens and rise typically 10% to 30% within weeks once currencies fall. When China finally realizes they bought into an Obama-Bernanke Ponzi scheme, they and other foreign debt holders will likely panic. It is most likely happening already. The collapse could trap recent buyers with 10% to 20% losses. Then a month or two later it will become a decent entry point as Americans go to the polls and remove Obama from office. If Obama wins re-election we expect a complete collapse of both the stock market and the US Dollar. That makes silver and gold even more attractive. Free cell phones and free minutes is a right for all of Obama's followers via their children. See: http://www.govcellphones.com/

The Obama administration Ponzi schemes and Chicago corrupt socialist fascist crony capitalism is now in collapse and China’s holders of American debt have discover that Obama IOU’s, not the American taxpayer backs the QE dollars. Americans may disavow Obama’s administration debt if it turns out he has been involved in a scam to redistribute wealth.

While cash, not stocks, is a better choice at the moment, silver and gold will be the safe havens and rise typically 10% to 30% within weeks once currencies fall. When China finally realizes they bought into an Obama-Bernanke Ponzi scheme, they and other foreign debt holders will eventually act. The drop could trap recent buyers with 10% to 20% losses. Then a month or two later it will become a decent entry point if Americans go to the polls and remove Obama from office. If Obama wins re-election we expect a deeper drop of both the stock market and the US Dollar. That makes silver and gold even more attractive.

Obama-Holder-Bernanke Treasuries climbed, with five-, 10- and 30-year yields sliding to records, as concern mounted that Europe’s debt crisis is worsening and before reports this week forecast to show U.S. growth cooled. The people fleeing to treasuries will lose their shirts too when the first Obama-Holder-Bernanke default and haircut occurs. Gold and silver are now at a relative low point.

Obama told the world last week just how stupid he is. He says America was a land of opportunity because it inherited an infrastructure and natural resources. He told Americans that they would have nothing if it were not handed to him like Americans handed Obama a free education at Harvard. Obama got into Harvard as a Nigerian citizen not an American and that is why his Harvard records are sealed.

But the truth is that America has wealth because Americans have a work ethic and brains. Nigerians have poverty, murder and persecution of Christians and Jews every month. Nigeria sits on oil but is so corrupt they distrust and kill their students who return to Nigeria to try to help reform their socialism. That is why Obama decided to claim he is an American and he hates Western European Christians who have the brains and initiative to build an economy with free enterprise, tolerance, justice, and liberty. Obama’s head is filled with 100% Nigerian Moslem socialist rubbish. Americans have tolerated Obama long enough.

Federal Reserve Chairman Ben S. Bernanke reiterated during his second day of testimony that the U.S. fiscal spending situation under Obama is “unsustainable.” It is a Ponzi scheme. Bernanke has lowered rates so that Obama’s debt is charged a lower rate and hence Obama has been able to load up with debt because Bernanke keeps the debt cost artificially low. The FED also pumps up bank earnings and bank purchases of Obama debt by offering Obama debt at an interest rate above the artificially low rate the banks pay to borrow from the FED. This is and has been the outright obvious fraudulent and deceptive Obama/Bernanke FED Ponzi scheme run under the name “quantitative easing.”

ObamaScare, no-work-welfare, housing assistance, and food stamps will have USA taxpayers $15 Trillion in debt if Obama is re-elected. Of course Obama doesn’t believe in term limits and thinks the president should serve as long as he gets re-elected by his deadbeat socialist constituency.

Obama has the home building industry down only -66% from the normal level before he took office. It was worse for a while when it was down –78% under Obama. Obama has continued the liar loans and is still suing banks that do not give liar loans.

“Eric Holder Sues Mortgage Bankers for refusing to continue to give Obama liar loans. Obama and Eric Holder filed a complaint against a mortgage banker alleging violations of the Fair Housing Act and Equal Credit Opportunity Act. The complaint alleges that defendant engaged in a pattern and practice of discrimination against deadbeats who could not or would not show they could make mortgage payments and therefore might be lying. Eric Holder claims they were not lying and should have been taken at their word instead of being embarrassed by having to prove they could make the payments just because whitey is required. Under Obama and Holder it is illegal for banks to ask people of “low self esteem” to show they are not a lying scam artist or deadbeats. Those is questions banks can only legally ask greedy white folks.
http://www.goodwinprocter.com/Publications/Newsletter-Articles/Consumer-Financial-Articles/2012_04/17_15.aspx

The year-end Obama mandated “fiscal cliff” would damage the GDP recovery by as much as –5%, Bernanke said. Obama demanded that budget cuts be put off until after the November 2012 election as punishment for the vast majority of Americans who will vote Obama out of office. Then Obama can blame his Obama Depression on Mitt Romney.

This week we predict Apple computer will begin a long decline of 50% to 80% in stock value. This happened every time Steve Jobs left the company. Maybe they will hire Obama to help them redistribute the $80billion (68cents/share) they are sitting on.  One of benefits of Obama is all the free things he has for his people.  Free cell phones and free minutes is a right for all of Obama's followers via their children.  See: http://www.govcellphones.com/


Gold and silver will make a rapid comeback now as the world realizes that leftist socialists like Obama and Holder live a lie and socialism is not compassion it is Hitler, Stalin, Mao, Pol Pot, Mr. Kim, and Castro etc.
http://topics.nytimes.com/top/news/international/countriesandterritories/northkorea/index.html

The Rasmussen Reports daily Presidential Tracking Poll for Wednesday shows Mitt Romney stuck at 46% of the vote, while President Obama earns support from 45%. http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

World market this week
When currencies collapse then commodities and gold and silver set new highs. We are seeing signs of that beginning now. It is exacerbated by international instability when empires collapse and massive uncontrollable migrations of people occur to escape increasing hardships.

Catalonia Spain joined a list of the country’s regions that may tap aid from the central government in Madrid, spurring Spanish 10-year yields to surge above 7.5 percent for the first time and joins Athens in anticipated fiscal collapse.

Oil and energy dropped to the lowest level in four days in New York, with oil dropping below $90 a barrel amid renewed concern that Europe is failing and the EU will dissolve once again into fascist socialist aggressive states. Futures tumbled as much as 3.7 percent as the euro dropped to an 11-year low and the cost of insuring Spanish debt surged to a new record. International creditors meet in Athens tomorrow as concern grows that Greece will once again not meet its bailout targets and require another extension. Crude also fell after a Chinese central bank adviser said the nation’s economy will cool further, putting at risk consumption in the world’s second-biggest energy consumer. Dubai Shares Dropped 2.4% as oil loses to gold.

Emerging markets faltered. All world markets will suffer now unless Obama is given the heave-ho. If Obama wins in November he will destroy American democracy as well as free enterprise.
http://finance.yahoo.com/echarts?s=^BVSP+Interactive#chart1:symbol=^bvsp;range=2y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefine

Germany faltering below the recent high: Choose 2 or 5 years. The DAX can’t even keep up with the DJI!
http://finance.yahoo.com/echarts?s=%5EGDAXI+Interactive#chart2:symbol=^gdaxi;range=2y;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on

The Swiss Markets are testing moving averages. It gave a sell signal last year.
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



American Economy
Squawk Box said many hedge funds are rife with Ponzi schemes again that will go bankrupt soon.

Past Week
US Retail Sales decline 0.5% in June falling for a third month in a row as small companies refuse to hire until they are certain the Obama Scare will not go into effect. The limited employment gains took a toll on consumers.

20% of the unemployed are not counted (the blue line) because they have given up on socialism and have joined John Gault in retirement.

http://www.martincapital.com/index.php?page=graph&view=unemployment

Retail Sales ex-auto Jun were down again by -0.4%

Empire Manufacturing Jul 7.improved slightly to 7.4

Business Inventories rose again in May this time by 0.3%. Inventory build-up means production must be cut.

CPI Jun 0.0% up from -0.3% ok

Core CPI Jun 0.2% was.2% ok

Net Long-Term TIC Flows May $55.0 bln up from $25.6B the world is still buying our runaway debt

Industrial Production Jun 0.4% up from -0.1% good

Capacity Utilization Jun 78.9% declined from 79.0% bad

NAHB Housing Market Index Jul 35 was 29 This is complete fabrication

MBA Mortgage Index 07/14 +16.9up from -2.1% Good indication of some clearing of inventory.

Housing Starts Jun 760K up from 711K Improved from –78% to only -67% since Obama liar loans went into effect. Obama has continued the liar loans and is still suing banks that do not give liar loans.

Building Permits Jun 755K down from 784K not good for jobs but good since there are too many homes

Crude Inventories 07/14 -0.809M down from -4.696M, not good

Initial Claims 07/14 386K up sharply from 350K Bad

Continuing Claims 07/07 3314K up from 3304K Bad

Existing Home Sales Jun 4.37M down from 4.55M Bad

We want home sales. What is not helpful is building new homes when we currently have over 1% of homes occupied by Obama-Holder liar loan deadbeats who cannot afford them and almost 1% vacant.

Philadelphia Fed Jul -12.9 bad again -16.6 Bad

Leading Indicators Jun -0.3% sharp downturn from 0.3% Bad

This Week

Jul 24 10:00 AM FHFA Housing Price Index May

Jul 25 7:00 AM MBA Mortgage Index 07/21

Jul 25 10:00 AM New Home Sales Jun

Jul 25 10:30 AM Crude Inventories 07/21

Jul 26 8:30 AM Initial Claims 07/21

Jul 26 8:30 AM Continuing Claims 07/21

Jul 26 8:30 AM Durable Orders Jun

Jul 26 8:30 AM Durable Orders - ex Transportation Jun

Jul 26 10:00 AM Pending Home Sales Jun

Jul 27 8:30 AM GDP-Adv. Q2

Jul 27 8:30 AM Chain Deflator-Adv. Q2

Jul 27 9:55 AM Michigan Sentiment - Final Jul

Market outlook July 23, 2012
Our anticipated world market collapse similar to the one we saw starting in August of last year has begun. Cash and precious metals are better than being fully invested in stocks right now until it is abundantly evident Obama and Holder will be out of office. But if Obama is re-elected currencies (including the dollar) will begin to collapse and inflation will rise rapidly. With a poorly educated Nigerian running America it will be America’s worst period in history. At some point China will panic and dump falling currencies. In summary, if Obama wins we expect a complete collapse of the stock market, the world economy and the US Dollar because nothing is too stupid for this administration to try. It could get much worse than in September of 2008 when Obama was first elected after he announced America was in a Great Obama pronounced Depression.

Examine the last 5 years of the NYSE. Obama could easily take America into a profoundly deep depression breaking 2009 lows if he is re-elected.
http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=5y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

The Dow Theory Industrials and Rails sell signal of August 2, 2011 still holds. The Rails failed again to meet even the last shoulder of the head and shoulder sell signal.
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;

The market sell signal is also seen in 3-month market cyclic data.
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 is now extremely complacent and extremely dangerous. Low volatility means it takes very little to move the market down because no one is buying stocks.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=m&q=l&c=

The Baltic Dry Index is already anemic and now is turning lower again. World trade has now almost completely collapsed with just having Obama around, without tariffs that were the blame for the collapse during FDR’s socialist experimentation that resulted in the last Great Depression. Clearly it is the corruption of gangster socialism and its crony capitalism, not rigorous free enterprise, that always ends in collapse of production and then economic depression.
http://www.bloomberg.com/quote/BDIY:IND/chart


Stock market update:
Asian markets were down sharply last night. China down –1.3%, Hong Kong down -3%, India down –1.6%, Singapore down –1.1%, Taiwan down –1.9%, S Korea down –1.8%Japan down -1.9%.

European markets were down sharply half way through their day in a range of –1%Swiss to –4.8% Austria

American market futures are down about –1.2% in after-hour trading at 6:30 AM EST.