Why do we let the mentally ill have access to guns? Adam’s mother was obviously mentally ill to buy automatic weapons and to teach her son who she knew was mentally ill to use her weapons. How did she get certified as safe to own guns?

 One has to ask why the face of insanity is so often mistaken as the face of brilliance.

So rather than listen to modern Bolsheviks, Nazis, and Righteous Terrorists who all have mental health issues and continue to live in and advocate gun control in the USA... lets listen to the people who understand the problem.  What did Hitler’s mother have to say?  Did she write about her “well adjusted” son’s childhood and his love of humanity and his desire to help the disadvantaged?  The parents of mass murderers should be heard so we can hear the real story.  They are the group of parents who watched this horror in Newtown CT unfurl with an even a more excruciating thought—what if the lunatic is my child?  These mothers and fathers are parents of mentally ill children and young adults and they are afraid their own children.  And what does it say of the mental condition of the mother of a disturbed child like Adam Lanza, who buys automatic weapons and teaches her disturbed son to use them when he is greatly disturbed by the divorce?  Did his mother want her son to murder his father?  Why teach him to kill with such purposeful accuracy and efficiency like a good Nazi?  Neither Adam nor his mother was mentally fit.

                This week in a blog post republished on The Blue Review entitled “I Am Adam Lanza’s Mother,” Liza Long writes: “I live with a son who is mentally ill. I love my son. But he terrifies me….”

  “I am sharing this story because I am Adam Lanza’s mother. I am Dylan Klebold’s and Eric Harris’s mother. I am James Holmes’s mother. I am Jared Loughner’s mother. I am Seung-Hui Cho’s mother. And these boys—and their mothers—need help. In the wake of another horrific national tragedy, it’s easy to talk about guns. But it’s time to talk about mental illness.”
                Long describes the love she has for her 13-year-old son, a mentally deranged boy who loves Harry Potter and has a “snuggle animal collection.” But according to her, this same child has also threatened her with a knife so many times that she keeps a Tupperware container for the days she has to collect all the sharp objects in the house. Nothing really helps she says: the powerful meds, the intermittent hospitalizations, or what she calls a “Russian novel of behavioral plans.” She says she’s trained her other children to lock themselves away for their own safety when their brother falls into one of his unpredictable rages. 
                Liberals have now attacked Liza Long claiming. “Long's alleged "vindictive and cruel posts about her children in which she fantasizes them away.  They say her allegedly insane and violent son is a normal boy who incites her wrath by being messy, buying too many Apple products and “supporting Obama."

http://www.hollywoodreporter.com/live-feed/i-am-adam-lanzas-mother-403127

Obama is supporting unions that shut down several American ports at a cost of $1Billion lost revenue per day per port. At each port about “$760 billion worth of goods are just idled each day." As they continue to negotiate, both sides say wages, pensions, vacations and other benefits are not an issue.  The union says average clerical salaries are about $87,000 a year. When benefits are factored in, that raises annual compensation to $165,000.  Management has offered a new contract that would raise that amount to about $195,000 by 2016, along with providing 11 weeks of paid vacation.  These are clerks mind you not the high paid union workers.  They have high a school education.  They say they elected Obama and now Obama owes them a favor and they want him involved now and forget the fiscal cliff.  The union members realize they are all obsolete so they are striking for the socialist dream of a high paying job for life where they only are required to pretend they work.  When the USSR collapsed they pretended to pay their workers who pretended to work.  It took from 1917 to 1989 for the Union of Soviet Socialist Republics and about 80million people imprisoned, tortured and executed for the USSR to disintegrate. 

http://jobs.aol.com/articles/2012/12/04/los-angeles-port-union-striker-workers/

The world looks as the USA heads for a fiscal cliff and Obama gives the middle class an enormous tax increase, and the rich get a tax increase far below what they expected all because Obama does not like any compromise.  We need to cut spending two to three times faster than we increase taxes.

U.S. consumer confidence fell ten points in December to a five-month low as Americans grew more concerned about the possibility of higher taxes next year.

World Economies

http://www.bloomberg.com/news/

http://www.foxbusiness.com/index.html 

Currently the world is losing confidence that America (with Obama) can lead the world in any way shape or form.  Iran said this past week that America (with Obama) is pushing the world to a nuclear WWIII. 

Japan may finally be bottoming from their Quantitative easing they started in 1985 and collapsed their growth in 1990.  It looks like the bottom has held for two years now.

http://in.finance.yahoo.com/q/bc?s=%5EN225&t=my&l=on&z=l&q=l&c= 

No, not even Germany has confirmed a bull market.  However it is testing the previous high and could have a breakout soon. This could be the top of the world stock markets until the USA and Greece get their acts together.

http://in.finance.yahoo.com/echarts?s=%5EGDAXI#symbol=^gdaxi;range=2y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

American Economy 

http://biz.yahoo.com/c/e.html

We expect the US dollar to fall under pressure before the end of 2013 as the tax revenue falls off and the 2014 projected deficit explodes. 

Last week

Dec 17

Empire Manufacturing Dec -8.1 much worse again from -5.2 
Net Long-Term TIC Flows Oct $1.3B investment in the USA declined from $3.3B

Dec 18

Current Account Balance Q3 -$107.5B Deficit still very high -$117.4B

NAHB Housing Market Index Dec 47 Housing index holding 46

Dec 19

MBA Mortgage Index 12/15 -12.3% terrible decline in purchases 6.2%

Housing Starts Nov 861K down from 894K

Building Permits Nov 899K up from 866K

Crude Inventories 12/15 -0.964M dropped from 0.843M

Dec 20

Initial Claims 12/15 361K somewhat worse 343K

Continuing Claims 12/08 3225K worse than 3198K

GDP - Third Estimate Q3 3.1% manipulated up from 2.7%

GDP Deflator - Third Estimate Q3 2.7% Unchanged from 2.7%

Existing Home Sales Nov 5.04M up from 4.79M

Philadelphia Fed Dec 8.1 improved from -10.7

 Leading Indicators Nov -0.2% down from 0.2%

 FHFA Housing Price Index Oct 0.5% up from 0.2%

 Natural Gas Inventories 12/15 -82 bcf down from 2

Personal Income Nov 0.6% 0.3% 0.3% 0.1% 0.0%

Dec 21

Personal Spending Nov 0.4% up from -0.2%

AM PCE Prices - Core Nov 0.0% stable from 0.1% 

Durable Orders Nov 0.7% up again from 0.5%

Durable Orders -ex Transportation Nov 1.6% up again from 1.8%

Dec 21 9:55 AM Michigan Sentiment - Final Dec 72.9 down from 82.7

Markets Dec 21, 2012

No sign of a potential upside breakout from the current trading range.  Without significant tax code changes soon, Obama in early 2013 is scheduled to get hit America with what would be the largest tax increase in our history not just for the wealth but on everyone.  The $1,000 per year tax holiday for a $50,000 income household disappears, the tax on the first $8,700 of income jumps from a 10% rate to 15% rate.  Child care tax credits will drop from $1,000 to $500. The marriage penalty will be back. The alternative minimum tax finally kicks in.   Therefore a family filing as married with two children making $50,000 will see their taxes increase by basically $2,700.  If the average American worker had previously set aside 5% for investment and retirement ($2500/yr) she would need to cut all of that plus reduce purchases to pay the Obama tax.  As for the wealthy, they are already moving their investments off shore and the expectation is that hundreds will seek citizenship in places like Belgium, Switzerland, and several island nations and stop working and travel the world living in hotels as many wealthy Europeans already do. 

http://www.policymic.com/articles/4451/when-the-payroll-tax-holiday-ends-in-2013-taxes-will-go-through-the-roof

Obama continues to give high school dropout unemployables free cell phones, food stamps, housing stipends and other gifts to avoid riots like the USA saw in 1969 under President Johnson.  Roughly 50% of Black students drop out of High School.  Now the habit is spreading to college.  The Organization for Economic Co-operation and Development report "Education at a Glance 2010" said that among 18 countries tracked by the OECD, the United States finished last (46 percent) for the percentage of students who completed college once they started it.  That is right, 54% of Americans now drop out of college and who do you think pays for that?  When it costs nothing there is no incentive to finish and earn back the cost.

http://www.freegovernmentcellphones.net/

Raising taxes on individuals will reduce consumer spending.  Raising taxes on business will reduce business investment and American jobs and thus reduce consumer spending as well.  Reduced consumer spending will further reduce jobs.  Consumers are already spending most of their disposable income so higher taxes translate directly into reduced consumer consumption.  We are already seeing deflationary pressure and are tip toeing around a great double dip Obama depression like the on the socialist FDR had.  He is not considered a socialist today but was considered one in his time.  It just shows the USA is slowly creeping toward socialism with its poverty, class warfare and its union violence. 

But by April 15, tax revenue will be increasing because people are taking profits now before the tax increase.   Taxes on those profits come due next year.  So the benefits of the surge in tax revenue will sharply reduce deficits because it will be exaggerated two fold in 2013 mostly because people are taking profits before 2013 begins.  But that extra tax in 2013 will not be available in future years and the extreme increase in taxes next year will cause people to try to postpone taking 2013, 2014, 2015 and 2016 profits.  That will make 2014 a disaster because deficits will rise sharply in a likely deeper 2013-16 recession.  The USA will look much like Greece if Obama does not cut spending.  But if he cuts spending the recession will initially be deeper.  Still it will at least come to an end sooner.

At the moment there is heightened activity because investors are taking profits now because taxes will be higher next year.  Not only will Fed taxes be higher but also city and state taxes will no longer be deductible for computing Federal Taxes.  Cities in NY and CA will be in greater pain by 2014 than in states with lower taxes.  The bulk of the next slowdown will be felt by the Stock Market by the end of the first quarter 2013 but hope will begin to spring back as revenues top expectations.  We could have +_20% stock market swings.  The market could take off at the moment the revenues rise sharply.  So I would want to get invested before the good news is out and that could be just after the worst news is out.   

So at present many are taking profits before the new taxes but it may not be advisable to re-invest profits right now as they are doing.   We know that because volume is up but the market is just churning.  What Obama is doing will make things progressively worse.  He is not bright enough to know the revenue in 2013 is not his policy but the negative reaction to his negative policy (which is a positive tax windfall).  That revenue will be wasted again and tax revenue will plummet in 2014 because there will be few corporate profits in 2013.

The DJ Rails continue to contradict the DJIndustrials and there still no DOW buy signal. The DJI and DJR confirmed a sell signal together in August 2011and the DJR remains confirming that sell signal today.  But evidence is that the two are now converging and it is a matter of there being another rally.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=3m;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

As predicted the market shows that Obama may be taking America into a profoundly deeper depression breaking 2009 lows since he was re-elected and we have little hope of a recovery with Obama in office.

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 to meet even the last 3-month shoulder of the head and shoulder sell signal. But bulk trade is rising and October looks like a turn around beginning.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=1m;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

The USA VIX is flat lined.  A low VIX normally precedes a sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end.  Volume is so low it implies Americans are fleeing stocks again.

http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c= 

Is the Baltic Dry Index is dropping toward a new low.  China probably hit bottom and has begun to bounce like a dead cat…unfortunately.   And Obama stalling the American economy will compound the worldwide recession.

http://www.bloomberg.com/quote/BDIY:IND/chart

Stock market update:

http://in.finance.yahoo.com/intlindices?e=asia

http://in.finance.yahoo.com/intlindices?e=europe