Mitt Romney told Obama and Pelosi he pays his income taxes regularly -- a lot every year – and promises the democrat socialists that when he dies he won’t take it with him and it will get redistributed at that time. He only needs his money while he is working here on Earth to help people who wish to work for a living. Obama keeps pestering Mitt because Obama wants to redistribute money from people who create national wealth to help all the liars who get Obama liar loans and liar Social Security disability payments using the money of Americans who paid in that SS and need SS for retirement.

European Central Bank President Mario Draghi said Thursday the central bank would make a new effort to buy government bonds with worthless IOUs to drive down the high borrowing rates squeezing the continent's indebted governments. This is of course the same Ponzi scheme socialist Japan has used for 20 years to keep interest rates low and the one Obama and the left wing are already using called quantitative easing. It caused a 22-year recession in Japan and their national debt is approaching 200% of their GDP. It will take the USA only 10 years to sink that low because Obama is redistributing national income. The percentage of Americans on SS disability has gone up seven fold, Obama more than doubled the number getting food stamps and Obama has a free cell phone and free minutes for underprivileged teen ages who already cannot concentrate and text each other instead of listening to their teachers. Most Americans would not even believe the criminal stupidity of what Obama and Draghi are doing if you told them. We have only the word of an incompetent socialist president. This is a major world scam. It could not be Constitutional. It is much worse than what socialists in Congress have forced the banks to do with “liar loans.” These socialists should be in padded asylums not running nations with dictatorial executive orders like Obama uses. These people will throw us to the worlds dogs, the new goose stepping Hitlers, Stalins, and Pol Pots. Stalin was socialists too who was elected over and over again. You cannot get rid of these idiots once they get power until they die.


Hitler was so bad all the socialists today refuse to admit the Nazi were nationalist socialists and one of their socialist ilk. The way Communist China now lets private industry co-exist is exactly what Hitler called Nationalist Socialism. National socialist Obama will be so happy to be goose stepping all over Congress and our human rights if he is re-elected. Socialists are morons. There are those who do, and those who teach, and socialists who think you need them to run your life and tell you what to eat and drink and when your children need to get the socialist’s “free” condoms and abortions.

Obama says America’s free enterprise system failed and must be replaced by his compassionate Hitler-Stalin socialism that gives everyone a job and equal pay. Obama says, "From each according to his ability, to each according to any wants or disabilities that he can fake." In America’s 230-year history free enterprise has never gone bankrupt. Free enterprise erases failed ideas such as socialism in a regenerative creative process. Just as Obama blames Bush for everything… the socialists always blame capitalism for the destruction the socialists spread. The USSR survived and oppressed their citizens for about 70 years. The USSR’s two most popular and successful leaders were Yeltsin and Gorbachev who put an end to the rule of the socialists and broke up their “evil empire.”

Natural gas led commodities lower Monday.

The Rasmussen Reports daily Presidential Tracking Poll shows Mitt Romney stuck in a 47% to 45%dead heat with Obama. http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll

World market this week
China’s volatility indexes are increasing and that is a sign that the bull trap is beginning to close on all world stock markets and that the bears know Obama-Bernanke-Draghi are running the Japanese Ponzi scheme that has keep Japan’s economy stagnant since 1990. Obama can’t figure out why the Ponzi scheme does not work.

German bonds rose, with yields on 10- year bunds falling from a one-month high, and the euro weakened.

Italy said the EU is at risk.

U.K. house prices fall in stagnant market.

Spanish and Italian two-year notes climbed for a fourth day amid ignorant speculation the European Central Bank will execute the Japanese/Obama Ponzi scheme and buy the securities. It increases the prospects of a perpetual recession with virtually unlimited national debt.

In spite of miss reporting by MSNBC that Emerging markets recovered then faltered at recent highs which are well below the March level which is well also below the high of 2012. All world markets will continue to suffer unless Obama is given the heave-ho. 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 which is well blow the March level which is well below the high of 2012: 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 Market is testing moving averages. It gave a sell signal last year. It is at a new high for 2012 but well below the 2011 high.
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
Last Week
Michigan Sentiment - Final Jul 72.3 up slightly from 72.0 last month.

Personal Income Jun rose 0.5% or at a 6% annual rate- does anyone actually believe this Obama report. If 10 % of Americans got a raise this past year they would have gotten a 60% raise to make it a 6% raise for the entire US population. We would expect personal spending to go up about 0.5% too.

Personal Spending Jun was flat at 0.0% after a -0.1% decline in May. That makes no sense if the average American had a 0.5% increase in income.

PCE Prices - Core producer prices Jun rose 0.2% after rising 0.1% in May indicating the Fed goal of almost 2.5% annual inflation.

Employment Cost Index Q2 up 0.5% on top of a 0.4% in Q1

Case-Shiller 20-city price Index May down -0.7% after down -1.9% in April. The Obama news said home prices rose when in truth they dropped again.

Chicago PMI Jul at 53.7 up from 52.9 indicating manufacturing may be recovering from the recent decline.

Consumer Confidence Jul rose to 65.9 from the recent low of 62.7

ISM Index Jul fell for July fell to 49.8. American manufacturing contracted in July for a second month, reflecting a drop in orders spreading the Obama malaise of incompetence. Egypt had seven plagues for its transgressions. America got Obama and that was more than enough for the economy.

MBA Mortgage Index 07/28 dropped to 0.2% from 0.9% bad for the housing glut

ADP Employment Change Jul 163K down from 179K

Construction Spending Jun 0.4% 0down from 0.9% means construction is down which would be smart considering the overhang in housing.

Crude Inventories 07/28 -6.522M much higher than 2.717M, oil prices under pressure by oversupply. Also means tourism has declined

FOMC Rate Decision Jul to do nothing

Challenger Job Cuts Jul -44.5% much worse than last month

Initial Unemployment Claims 07/28 365K up from 353K

Continuing Claims 07/21 3272K flat

Factory Orders Jun -0.5% sharply lower than previous 0.7%

Nonfarm Payrolls Jul 163K up from 80K

Nonfarm Private Payrolls July 172K up from 84K there were 172k-163k fewer government jobs meaning returning unemployed soldiers. Clinton also reduced government workers by trimming soldiers. Liberals never trim NPR Pravda and other propaganda tools.

Unemployment Rate Jul 8.3% up slightly from 8.2%

Hourly Earnings Jul 0.1% a smaller increase than the 0.3% last month

Average Workweek Jul 34.5 unchanged

ISM Services Jul 52.6 service sector up from 52.1

This Week

Aug 7 3:00 PM Consumer Credit Jun

Aug 8 7:00 AM MBA Mortgage Index 08/04

Aug 8 8:30 AM Productivity-Prel Q2

Aug 8 8:30 AM Unit Labor Costs -Prel Q2

Aug 8 10:30 AM Crude Inventories 08/04

Aug 9 8:30 AM Initial Claims 08/04

Aug 9 8:30 AM Continuing Claims 07/28

Aug 9 8:30 AM Trade Balance Jun

Aug 9 10:00 AM Wholesale Inventories Jun

Aug 10 8:30 AM Export Prices ex-ag. Jul

Aug 10 8:30 AM Import Prices ex-oil Jul

Aug 10 2:00 PM Treasury Budget Jul

Market outlook August 6, 2012
There surge in stock prices that came as the Ponzi scheme moved from Japan to the US to Europe last week failed to result in a breakout or anything near a buy signal.

It appears that the stock market will still drop in 2012 starting roughly the same week that it dropped 10+% last year. Compare what GLD did when stocks dropped last August. To do that, right click and change the date range from “200 days” to “Past Year” and see what gold did. This is a good way to plot your stocks together.
http://stockcharts.com/freecharts/perf.html?DTD,EXT,EPS,EES,EZY,ROI,GLD

People forget that the DJI is not by itself the famous stock market indicator. The DJR must confirm the DJI for there to be a buy signal or sell signal. The DJI and DJR confirmed a sell signal together in August 2011and the DJR remains confirming that sell signal today. The DJI is the last “safe” place bulls go to reduce risk before the entire stock market collapses. Therefore the DJI is biased bullish and needs the DJR for balance. The DJ Rails continues to say sell even as people seek the false security of the DJ Industrials.
http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=6m;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

The NYSE is much more representative of the US economy than are the DOW indices. Examine the last 5 years of the NYSE. It shows that Obama may be taking America into a profoundly deeper 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. Notice that yesterday wasn’t even a breakout.
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 is showing that the bear market has barely started and the VIX indicates the market has a long way to go fall until the VIX rises above 30 where bear markets normally end.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c=

The Baltic Dry Index is already anemic and now is falling 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 up last night. China up 1%, Hong Kong up 1.7%, India up 1.3%, Japan up 2%.

European markets today are up half way through their day in a range of 0% to +1%.

American market futures are up about 0.2% in after-hour trading at 7 AM EST. This indicator does not statistically correlate with anything.