The west is no longer attracting intelligent hard working people who want a chance to succeed. Instead the socialists are trying to redistribute the income of the hard working job creators with higher taxes and intelligent hard working people are starting to leave. Japan is set to pass legislation Friday to raise the sales tax so that the reward for being indigent wards of the society shrinks. Europe has sales taxes in excess of 20% to slow the exodus of intelligent and talented workers.

How is Obama's shutting down of charitable Catholic Hospitals and the killing of some of the people who have depended on Catholic charity... different from the murder Obama claims Mitt Romney was responsible for when Romney was working for the most respected corporate business advisor in the USA?

How is the Obama Ponzi scheme different from the Weimar Republic’s scheme?
As the situation worsened Hitler was elected and he blamed the bankers and the richest 2%. Obama blames the bankers, the richest 2%, and small businesses that do not support socialist-democrat liar loans or Obamascare. Hitler had the Brownshirts intimidate his enemies. Obama has used Black Panthers at election time and in the Florida Hoodie shooting case and ACORN busloads to intimidate his enemy Americans who work hard, protect their neighborhoods, and earn too much money. Obama has small businesses very scared because they have no unions to support socialists and Obama lacks any knowledge about what businesses much less small businesses do that government needs and can’t do.

Obama actually believes NASA, Government agencies, and the Army, Navy, and Airforce built our technology. Obama does not understand that American engineering firms build our technology and individual consumers like people, other private enterprises, and the government place orders. When you buy a car and pick out the features you are not the creator of the car. You are still just a consumer. The government is 99% a consumer. American transportation infrastructure was once private and there were toll roads, toll bridges and toll ferries etc. That was the highest growth period of the USA back in the 1800’s. Now the government regulates and purchases most of the infrastructure from private firms.

The government is a consumer and a regulator and sometimes makes the mistake of trying to compete with private enterprise primarily with propaganda news and film enterprises because Dr. Goebbels said that was essential to the success of socialism. “Make the lie big enough to thrill as well as convince the audience.” Usually governments do not design bridges, buildings, airports, vehicles, and any major aspect of any transportation system with exceptions being the USSR, and Red China. Adolf Hitler used the system China is now developing which is capitalism under Socialist supervision where the government privatizes but regulates production as well as all the OSHA and other safety things.

In America, most of the higher education system is privatized. Most of local education is funded by towns through elected School Boards.

One thing Americans do not understand is that socialists think competition is bad. So when an American points out to Obama that his taxes will destroy the incentive to work hard and competitive talented people will move to Canada and even London, Obama says good riddance because competition is an evil of the middle class (the decadent bourgeoisie). Socialism’s goal is to have a classless society. Most liberals do not understand that after they took power, Hitler, Stalin, Mao, and Pol Pot slaughtered the liberals first. The Hollywood stars with their cars and jewelry will never be seen again after real socialists take power. And when they take it they want to rule for life.

Obama’s campaign is making all-time moral and ethical lows. Now they say America’s free enterprise system failed and is an “e coli Republican disease.” “Mitt wants to take you back the way it was before Obama saved us.” Obama says the e coli system of the “Founding Slave Masters” must be replaced by his compassionate (Hitler-Stalin) style socialism that gives everyone who will vote for him a cell phone, an apartment, food stamps, welfare, and child support. Obama says, "From each according to their ability, to each according to their wants and disabilities."
http://www.huffingtonpost.com/2012/08/03/chick-fil-a-kiss-ins-gay-lgbt_n_1739365.html
http://www.freegovernmentcellphones.net/free-cell-phone-providers/assurance-wireless
http://theeconomiccollapseblog.com/archives/outrageous-the-federal-government-is-giving-out-free-cell-phones-and-free-cell-phone-minutes-to-welfare-recipients

Long term unemployment has doubled under Obama.
http://video.foxbusiness.com/v/1733671659001/study-youre-paying-for-government-until-july-15/
http://poorrichardsnews.com/post/27146302552/long-term-unemployment-has-doubled-under-obama



News Corp. reported a nearly $1.6-billion loss in its fiscal fourth quarter.

The most powerful Greek union is now threatening nationwide blackouts at the height of the summer tourist season to derail the plan.

The most powerful Greek union is now threatening nationwide blackouts at the height of the summer tourist season to derail a plan to sell the nationalized electric power industry “PPC” back to private enterprise. Nikos Fotopoulos, head of the communist union said, “We will make saving PPC a cause for all Greeks,” as he sat in his Athens office adorned with photos of communist mass murderers. “We fight our battles with faith and passion, and we fight them hard. A serious state must control businesses of strategic importance.”

The euro weakened Wednesday as a drop in German industrial production, lower U.K. growth forecasts and ratings cuts for Spain and Italy pointed to Europe’s sovereign-debt crisis is worsening.

Shares of corporations in the travel industry plummeted Wednesday. Priceline sank 16% pulling down other online travel names with it. Expedia Inc. (EXPE) was down 2.7%, TripAdvisor Inc. (TRIP) fell 4.2%, And Orbitz Worldwide Inc. (OWW) stock slumped 19% as it reported a second-quarter disappointment of its own, confirming the European problem. Chief Executive’s reported global economic uncertainty intensified during the second quarter and continued into the third, resulting in a lowered sales outlook for the year.

The unpopularity of toxic Obama mandated battery cars continues to plague the American auto industry. A123 Systems Inc., the Obama mandated U.S. government-backed loss leader of advanced toxic waste batteries for electric vehicles, is turning to China's for a bailout by Wanxiang Group Corp., a Chinese conglomerate, agreed to acquire up to an 80% stake.

The investment would secure the future of the company, which warned earlier this year it was in danger of running out of money. A123 this year ran into financial trouble with slower than expected take up of electric vehicles in the U.S., delays by its chief customer, Fisker Automotive Inc., and manufacturing problems that led to a costly battery recall in March.

To help low income students, middle income students will get cut from major universities. They (60K family income) used to get large scholarships and loans. Now their loans will get capped at $2000 per year so that the burden is shifted to the parents who are already overburdened with their student’s expenses.

Apple Inc. said Google Inc.’s highly popular YouTube won’t be included in the next version of the software used in the iPhone and iPad.the latest sign that Apple would cut off its nose to spite its face.

Morgan Stanley & Co was accused in a lawsuit by Hong Leong Finance Ltd. of Singapore of deceptively selling investments while rigging them to fail for Morgan Stanley’s own benefit.

The Rasmussen Reports daily Presidential Tracking Poll shows Mitt Romney stuck in a 45%dead heat with Obama. Confidence in the U.S. job market has fallen again, with the highest number of Americans in 10 months describing the employment situation as worse than it was a year ago.
http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll


World market this week
Former U.K. Prime Minister Tony Blair told a German newspaper he is concerned Britain might decide to leave the EU in a referendum as the eurozone crisis causes 'powerful political change' in the region. U.K.’s economy is shrinking faster than Spain’s, as the value of Britain’s independent monetary policy outstrips its deteriorating growth prospects.

The west is no longer attracting intelligent hard working people who want a chance to succeed. Instead the socialists are trying to redistribute the income of the hard working job creators with higher taxes and intelligent hard working people are starting to leave. Japan is set to pass legislation Friday to raise the sales tax so that the reward for being indigent wards of the society shrinks. Europe has sales taxes in excess of 20% to slow the exodus of intelligent and talented workers and reduce the inflow of ignorant, lazy, and intolerant immigrants who would otherwise have no incentive to earn a living.

News Corp. swung to a loss of $1.6 billion in its fiscal fourth quarter.

German factory orders, adjusted for seasonal swings and inflation, dropped 1.7 percent from May, the Economy Ministry in Berlin said today. From a year earlier, German factory orders fell 7.8 percent when adjusted for workdays. The decline is more than twice as much as economists forecast.

The Tokyo Stock Exchange Group Inc.’s second major system error in seven months halted derivatives trading for about 95 minutes, cutting equity volumes, driving government bonds lower

Yields on Spanish and Italian two- year notes rose for the first time in five days as hope in the quantitative Ponzi easing scheme faded, and Standard Chartered Plc tumbled the most since at least 1988. Spain’s 10-year bond rose nine basis points to 6.83 percent.

Elan Corp, the Irish drugmaker, sank 11 percent to its lowest price this year as it wrote down to zero the value of its venture with Johnson & Johnson.

Italy’s economy contracted for a fourth straight quarter amid an intensifying euro-area debt crisis.

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.

Italian industrial production declined 1.4 percent from May, a –17% annual rate of decline if it continues.

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

Emerging market composite indicates it is breaking down through the lows.
http://finance.yahoo.com/echarts?s=%5EGSPTSE+Interactive#symbol=^gsptse;range=5y;compare=;indicator=ema(200,100)+volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

German stocks are faltering below the recent high that is well below 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
Consumer Credit spending in Jun fell 66% to $6.5B from $17.1B last month.

Yesterday
MBA Mortgage Index 08/04 -1.8% far below last 0.2%. The housing crisis worsens

Productivity-Prel Q2 1.6% up from -0.9% A probable data scatter.

Unit Labor Costs -Prel Q2 rose 1.7% a 6.7% annual rate

Crude Inventories 08/04 -3.729M prices will continue to rise for gasoline -6.522M

Today
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

This Week

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 9, 2012
When interest rates are artificially kept low by governments it is to enable the government to borrow continuously and afford ever-higher debt. The way it is done is for the government to compete with private bidders and therefore artificially increase demand and keep rates low. This is a Ponzi scheme that is both unsustainable and at the same time makes the economy more volatile until it becomes unstable. That is what the Weimar republic did and what caused German hyperinflation when it went unstable. The whole world is starting to use the Obama-Bernanke Ponzi scheme. (to be continued)

When monetary policy keeps prices low for a long period of time it dries up supply until shortages start to occur everywhere. Then the monetary policy collapses and commodity prices rise rapidly and inflation grows out of control… and finally the Ponzi Quantitative Easing scheme collapses (as it did with the Weimar Republic) and the US dollar collapses (as the German currency collapsed). That is where the Obama Ponzi scheme is headed. Look at bulk trade and it is clear trade is drying up and initially it has a depressing effect on prices. But then shortages explode and hoarding also explodes. We are on the edge of the Obama Crash and chaos right now.

The exchange volume is at new lows indicating the situation is even more precariously unstable and could swing widely again. The Knight trading platform went unstable Monday and instead of squeezing small investors it attacked fund clients as well and had to be stopped. The markets and the economy are becoming unstable as the Quantitative Easing Ponzi scheme grows internationally. The 1922 Great Depression type German death spiral followed by hyperinflation is beginning to loom now on the Obama horizon. That scenario catapulted National Socialism and international socialism in the 1920s and 1930s and destroyed several democracies.

Remember that Obama’s key Chicago advisor advised Obama to treat the 2008 banking crisis as an opportunity. This time with an international Ponzi scheme Obama can destroy American free enterprise and America will not be there to stop the slaughter of innocent people who do not carry and wave the dominant leftist party flag. Even the communist Trotsky got an axe in his head courtesy of Stalin because his flag was not the Stalinist’s red shade.

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” then move it start in January of 2011and 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. The Divergence you see is the classic symptom of the Dow theory bull’s trap.
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 0.6%, Hong Kong up 1%, India down -0.2%, Japan up 1.1%.
European markets today are scattered half way through their day in a range of –0.6% to +0.5%.
American market futures are down about -0.1% in after-hour trading at 8 AM EST. This indicator does not statistically correlate with anything.