Obama’s ACA will be the next major Obama idea to cripple the American Economy because Obama and his advisors remain clueless to how socialist, much less capitalist economies work and finance themselves. In socialist health care countries such as the members of the EU they have Nation-State Health Care that does not destroy the corporations. European corporations do not have to pay the health care costs or other national costs directly as Obama’s ACA does. A national educational system or a national health care system in the EU is not just a phantasy of American leftists it also shows their complete ignorance of world socialism.

I lived in the EU for a while.  All costs are paid with an EU national sales tax which means American corporations that sell to the EU pay the EU health care taxes as well.  The individual EU “nation state” governments require it so the governments use the sales tax VAT revenue to pay for it as well as all government welfare costs. The Obama Affordable Care Act “ACA” requires that American companies with 50 or more full-time employees provide the health insurance for all workers and that means that cost is added to the cost of American products and so if Spanish and Chinese buy an American product they realize they are subsidizing the American government. This is an issue of concern for every American corporation but for many smaller businesses this can be a huge problem.  Under Obama ACA American products will cost more than EU produced products in the USA as well as abroad.  Obama adds the cost of Obama socialism to all American products while the socialist EU does the opposite and taxes all the world products equally with a VAT.   In the EU they do not try to hobble their corporations. They are slowly trying to move from nation-state heath care to a true EU national healthcare.  Neither true National Education nor true National Health Care exist yet in the EU; they are “Nation State” programs in their own languages and under their own laws.  Spain is a “nation State” of the EU with a GDP less than the American state of Delaware.  The school systems in the EU have their oun language and nationalist courses of study. 

A national educational system or a national health care system in the EU at this time is just a phantasy of American leftists and it also shows their complete ignorance of world socialism.

Practically every nation state in the EU has a different educational system and a different health care system and uniquely different corporate incentive programs.  Obama’s ACA will be the next major Obama idea to cripple the American Economy because Obama and his advisors remain clueless to how socialist much less capitalist economies work finance themselves.  Obama’s ACA cripple America’s corporations with the burden of Obama socialism.   In contrast, anyone selling products to EU Nation States subsidizes their socialism with at least 20% of direct sales taxation plus at least 15% of hidden socialist taxes just to stay in business in EU nation-states.

http://www.europarl.europa.eu/news/en/pressroom/content/20101025IPR90069/html/An-EU-citizen's-right-to-get-medical-treatment-in-another-Member-State 

Bernanke has run out of QE manipulation.  He has driven America to the point where he is pushing on a string because he cannot make interest rates lower than zero.  Bernanke has built an economic Ponzi scheme of historic proportions that probably will be the next worthless paper bubble to collapse world financial markets. See:

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

US Defense spending plummeted 22% in the last three months of the year, which foreshadows the dangers to the economy as thousands of GI’s are put on the streets and contractors go out of business and lay off civilian employees.

Blackberry plans to burry the competition but when the new BlackBerry phones appear on store shelves, the price may deter some buyers. The Z10 will cost at least $149 with a wireless contract. 

Consumers' views on the labor market are weaker. The "jobs hard to get" index rose for the first time since September to 37.7 from 36.1 the month before. The "jobs plentiful" index fell to 8.6 from 10.8 

Virtually every American industry reported poorer earning this week but virtually every one was hyped as a success story to deceive American investors on a scale never before we had Obama socialist reporting like the grand old USSR/Pravda and now the Obama MSNBC/Pravda. 

Ford shares slumped as it forecasts Europe loss and socialist unions occupied factories and claimed the remaining inventories and assets.  Ford could face a 100% write-off with Obama’s double dip depression.

Ingersoll-Rand Plc reported a 2.7 percent drop in earnings on weak demand for its heating and cooling systems and other industrial equipment.

Merck, the No. 2 U.S. drug maker on Friday said it earned $1.4 billion, or 46 cents per share, in the fourth quarter. That compared with $1.51 billion, or 49 cents per share, in the year-earlier period, when the company took charges for acquisition and restructuring expenses.

Boeing’s biggest problem is they are still unable to understand the Dreamliner fire problem.  With no problem there is no problem to fix until it is too late and then Boeing’s reputation will be lost.   Everything is fine except for the still “unknown” cause of the in-flight fires. 

Apple will introduce another device with 64gig ($20) more memory and will only cost $250 more.  Apple fans are slowly going broke at this point and Asia will not even touch the overpriced products.  But if Apple charges what their products are worth there will be very little earnings but lots of losses.

Caterpillar on Monday reported earnings of $1.91 a share, excluding a write-down of 87 cents a share relating to a China holding. That compared to earnings of $2.32 a share in the year-earlier period.  With that write down they actually only made $1.04 per share or a 55% drop in earnings due to massive accounting fraud in China.  Large inventories of unsold Caterpillar's bulldozers, tractors, and other machines have been accumulating in warehouses due to slowing economies in China, Europe, and the U.S.  Inventory levels, grew another $1 billion above year-ago levels. 

New home sales are lower now than during the bottom of the recession of 1991.  But it is hyped as, “New-home sales the most since 2009” to get people into the stock market now with the DJI at an historic high.  Americans are being lead in at the worst time. 

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

http://www.businessinsider.com/shiller-housie-prices-2013-1#ixzz2J5uhjXbl 

We are not deleveraging any more.  The Fed is leveraging the money supply up creating a bubble and no economic recovery at all. We are in the Obama Depression.  The Fed is pushing on a string flooding the world with credit.  That is the reason for the current stock market and Bond bubble.  The Fed more than tripled its balance sheet since 2008 to more than $3 trillion through its bond purchases, known as quantitative easing.  Treasuries are now giving a higher return but that means that the dollar value of the “safe” treasuries Americans own declined.  Treasuries, stocks, and bonds are all near epic highs and the bubble is just waiting to pop.   

Greece’s socialist candidate’s chief economic advisor was interviewed on Squawk Box and said Obama was a socialist as if that is a good thing.

Obama’s policies are destroying the wealth of the wealthiest nation in the world.  Churchill was right, socialism delivers equality of poverty and it pulled down Japan and now is now pulling down the USA.  

The three-judge high court ruled that the Executive Order appointments President Obama made to the National Labor Relations Board last year are Unconstitutional.  But the ruling has much broader constitutional significance, saying Mr. Obama erred when he said he could even claim the power to determine when he could make such appointments.  The constitution says the only time he can do it is in an emergency in the week that only occurs every 2 years.  Obama cannot plan ahead to bypass the American Constitution it must be a legitimate emergency appointment.  It is an abuse of Executive power to delay appointments to avoid the Constitutional right and duty of the US Senate to question the credentials and competency of Presidential appointees. 

When will the Bernanke Bubble burst?  Federal Reserve Chairman Ben S. Bernanke’s unprecedented bond buying pushed the Fed’s balance sheet to a record $3 trillion as he has the Fed now purchasing $85 billion of securities every month, using the full force of its balance sheet to inflate securities markets. The central bank already began $40 billion in monthly purchases of mortgage-backed securities in September and has now added $45 billion in Treasury securities to that pace this month flooding world markets with money that has no place to go but into stocks and other securities.  Some people say the American collapse could cause US unemployment to be the highest in the world.  One person thinks 50% US unemployment and socialist equality of poverty will make the fiscal cliff fade quickly from memory as an inconsequential event in this administration.  Bernanke is effectively leveraging US economic risk similar to the way the banks did which caused small losses to collapse the banking system in 2008. 

World Economies

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

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

Caterpillar the world's largest maker of construction equipment posted sharply lower profit due to a $580 million loss connected with accounting fraud at its Chinese subsidiary and weak demand among its dealers. Caterpillar's bulldozers, tractors, and other machines have been accumulating in warehouses due to slowing economies in China, Europe, and the U.S. 

Under socialism it is impossible to lay off 50% of the workers at a steel plant in China and hire the same number somewhere else to build railroads and electrify rural areas.  They now need to deal with infrastructure and high pollution if they are going to resume real national economic growth in value but socialism freezes the redistribution of labor. 

 http://in.finance.yahoo.com/q/bc?s=000001.SS&t=5y&l=on&z=l&q=l&c=

 Finally China’s markets are approaching a buy signal after four years of MSNBC/Pravda lying and claimed China was in growing again.   Do you see their leading indicator close to giving a reliable buy signal?  We don't... it has to break out of this current resistance level!

http://in.finance.yahoo.com/echarts?s=000001.SS#symbol=000001.ss;range=1y;compare=;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 The French market indicates stagnation since 2000.

http://in.finance.yahoo.com/q/bc?s=%5EFCHI&t=my 

German stocks in 2013 are now all-time highs as when the bubbles burst in 2000 and 2007.  See:

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

A triple-dip recession looms as UK economy falters again.  The British market indicates peaking in 2000 and stagnation since 2007.  Look at the sharp spike up in is stock prices the last month as Bernanke’s $85,000,000,000 each month even exceeds the capacity of the American economy to absorb and it begins to be wasted on investments abroad of which most will be lost forever.  QE crippled Japan by 1990 and they still have not recovered.  The Obama/Bernanke bubble will destroy even the British, French, German and others that are being sucked into this socialist tornado of cash.

 http://in.finance.yahoo.com/q/bc?s=%5EFTSE&t=my

The Swiss market indicates stagnation since 2007.  But once again look at the spike up in stock prices with Bernanke’s $85,000,000,000/month gift from America to the stock and bond markets of the world as more people enter poverty, go hungry and lose their jobs under Socialism’s equality of poverty.

 http://in.finance.yahoo.com/q/bc?s=%5ESSMI&t=my

 The NYSE is similar to the British and Swiss and indicates stagnation since 2007 but no spike up. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 American Economy

The stock market continues disengaged from the economy and is becoming increasingly unstable because the FED has created a balance sheet bloated at a rate of $85,000,000,000 per month.  Volume is extremely low meaning very little cash can and is controlling the market. 

The DJA in 2013 is also now at a record high. Look at the spike up as $85,000,000,000 flows into markets each month.  http://finance.yahoo.com/q/ta?s=%5EDJA&t=my&l=on&z=l&q=l&p=&a=&c=

 

This week

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

Jan 28 8:30 AM Durable Orders Dec 4.6% up from 0.8% , good

Jan 28 8:30 AM Durable Goods -ex transportation Dec 1.3% down from 1.6% bad

Jan 28 10:00 AM Pending Home Sales Dec -4.3% sharply lower from 1.7% bad

Jan 29 9:00 AM Case-Shiller 20-city Index Nov 5.5% up slightly from 4.3% good

Jan 29 10:00 AM Consumer Confidence Jan 58.6 down sharply from 66.7 bad

Consumer Confidence Erases 2012 Gain on Payroll Tax. Confidence among U.S. consumers declined more than forecast in January, reaching the lowest level in more than a year as higher payroll taxes took a bigger bite out of Americans' paychecks

http://www.cnbc.com/id/100415909

Jan 30

 MBA Mortgage Index 01/26 -8.1% got much worse from 7.0%  Bad

ADP Employment Change Jan 192K down from 215K Bad

GDP-Adv. Q4 -0.1% collapsed from 3.1% bad

Chain Deflator-Adv. Q4 -0.6% deflationary down from 2.7% bad

Crude Inventories 01/26 5.947M up from 2.813M  good

FOMC Rate Decision Jan 0.25% no change from 0.25% 

Jan 31

Challenger Job Cuts Jan -24.5% terrible job cuts from 34.4%

Initial Claims 01/26 368K up significantly from 330K - bad

Continuing Claims 01/19 3198K up from 3157K   bad

Personal Income Dec 2.6% makes no sense from 0.6%  manipulation/error

Personal Spending Dec 0.2% downslightly from 0.4%  bad

PCE Prices - Core Dec 0.0% 0constant 0.0%  good

Employment Cost Index Q4 0.5% up from 0.4%  ok

Chicago PMI Jan 55.6 good improvement from 48.9   50 is no change

Natural Gas Inventories 01/26 -194 bcf getting scarcer from -172 bcf Not good

See how Americans are deceived about the housing industry just like citizens were in the USSR and are in China today.  Here is the real new housing industry situation. 

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

Payrolls rose only 157,000 in January down from 196,000 advance December and a 247,000 surge in November, Labor Department figures showed today in Washington. The revisions show the jobless rate increased to 7.9 percent from 7.8 percent.

Feb 1

Nonfarm Payrolls Jan 157K down from 196K

Nonfarm Private Payrolls Jan 166K down from 202K

Unemployment Rate Jan 7.9% up from 7.8% 

Hourly Earnings Jan 0.2% down from 0.3% 

Average Workweek Jan 34.4 down from 34.5

 

Markets February 1, 2013

Virtually every American industry reported poorer earnings this week but virtually every one was hyped as a success story by grand old MSNBC/Pravda.

The VIX is below where it was in 2007 before the last bubble burst.  A low VIX normally precedes a panic sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end.  http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=l&q=l&c=

Is the Baltic Dry Index is near a new low.  China probably is at a bottom.  

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

Is it possible that world trade just flat lined?  Obama is destroying American shipping now by supporting crippling wages ($180K/yr), benefits (9 wk vacations), and pensions (80%+of retirement salary) for unionized dockworkers while all other Americans pay for it in costs crippling the economy.  State and City workers have also coerced their benefits using union dues to elect corrupt politicians and buy arbitrators.  http://www.bloomberg.com/quote/BDIY:IND/chart

World stock market updates:

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

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