Aug 23 It is clear that some group is testing America’s computers for either criminal or terrorist reasons to destabilize American economic systems. A clear and evident attempt of organized criminals or terrorists to destabilize the entire USA of stock market system spoofed the NASDAQ for three hours on Thursday. The crime was apparently isolated to one system inputting data that was so out of bounds that it resembled static but wasn’t static. They had uncanny ability to make changes and anticipate how NASDAQ would respond. This can only be done by criminals systematically testing the NASDAQ system for instabilities and then using that information to attack and overwhelm the NASDAQ system. The criminal market participants should be identified and prosecuted and in the future any high-speed clients abusing the system should automatically be cut out. That would force clients to stay honest to do business rather than lie to regulators and say they were also spoofed. (alert July new home sales plummet 20%)

In other words all clients should have systems that monitor their own system just as NASDAQ does and other major market makers have. It appears that the criminal behavior originated with a single client system and the FBI with the help of the NSA should investigate the owners of that system. One method they used was to make many thousands of buy orders and then cancel them and make sell orders before any orders could be executed. That would appear almost like static to slow systems but could manipulate the NASDAQ, which then could corrupt the other indices.

The private clinic medical system in America is already beginning to evolve. It is the competent private alternative system that private doctors created to compete with slow incompetent socialized medicine. Clinics are private hospitals where the best USA doctors will set up practice. It will not deal with socialized medicine, the costs will be negotiated. They accept good private insurance but will not deal with the socialized system. You will not need insurance because the true cost of medicine before insurance companies and the national regulators runs in the EU at about 25% the cost of socialized medicine. You will be able to use private insurance or pay cash up front and get the lower negotiated rate. Doctors love to help people and they absolutely hate government regulations and harassing bickering which requires a large business office and an attorney to avoid bankruptcy.

Gold jewelry demand in Indonesia is at a four-year high as consumers in Southeast Asia’s biggest buyer join India to China in increasing purchases as their middle class expands. Consumption of necklaces, bracelets and rings will probably climb to 40 metric tons this year, according to the secretary-general of the Indonesian Goldsmiths and Jewelers Association. That’s a 30 percent increase from 2012.

Aug 22 Many short squeeze experts have been squeezed. And many individual investors are out of the market completely because it is so overpriced and based on fraudulent government statistics that would have you believe things are much better now than five years ago. The real threat is that Obama’s socialist waste will cause an economic depression. The WSJ today reported that over 6000 cases of disability fraud involving a few doctors and one federal employee have just been identified on the little island of Puerto Rico alone. Municipal bankruptcies loom large and residents in Detroit wonder how many people does it take each day to feed 50,000 stray dogs. It is hard to believe Detroit’s GM was claimed to be an Obama socialist success when the American automobile industry has been nuked by Obama and the only beneficiaries are the unions and the rich people who make over $100,000 per year and can afford a pricey subsidized Tesla vehicle that runs on toxic batteries that the USA dumps in China for recycling.

Free enterprise with private capital built an American canal and then a rail mass transportation system between cities. Then states created departments of transportation to regulate free enterprise so that every train car needed its own ticket agent/conductor and union featherbedding began to destroy mass transit profitability. So the railroad unions demanded socialistic transportation subsidies. Then Detroit got its automobile lobby going to push for socialist subsidized highways to handle more cars. So a socialist subsidized highway lobby took control of American transportation and soon the dream was for every American to have a private home in the country with a dog and a few chickens to keep the bugs down. Socialists lobbying for unions and regulation killed both rail mass transit and affordable city housing. Now free enterprise is back rebuilding the cities.
But modern socialist dream is where you don’t burn hydrocarbons in your car to generate mechanical motion. Instead you buy a highly subsidized car and make someone else burn the hydrocarbons in a new power plant in someone else’s back yard to create electricity, transform the electricity to high voltage, transmit the electricity on high voltage lines for hundreds of miles, transform the electricity back to low voltage, and finally charge up your newly designed car battery that is guaranteed for three years but is lucky to last two years. Then dump your dead battery in China.
It’s a wonderful life to have a socialist job where you vote for the socialist candidate who is corrupt and appoints your union arbitrator so you can retire from your state job after 10 years at 90% of salary and take another corrupt socialist state job. There are people who not only get multiple job pensions but also multiple social security pensions such as German, Swiss, and US social security and the corporate pensions from where they worked in each country. Another gets French, British, and Irish SS benefits plus three corporate pensions. This is a growing problem in the USA but a staggering expense for the even more corrupt and socialistic EU where it only takes 10 years to get social security.
  
Aug 21 The world economies loom on a precipice caused by legalized socialist looting. President Obama is not the only person that has problems understanding free enterprise. Socialists in general are socialists because they have no understanding of business, economics, or how to live within their means. They only know how to use governments to loot their country and others. And they work together under non-aggression treaties to squeeze out the free world’s economic engines of prosperity that still have leaders who do have understandings of business and economics. They end up like Stalin and Hitler did and divide the world up to loot all the non-socialist states first. Finally they try to loot each other as Hitler and Stalin did. President Roosevelt was enamored with the military success of the socialists and was sympathetic to the aims of socialism. At Yalta, President Roosevelt honored the Hitler-Stalin non-aggression pact and Roosevelt gave Stalin everything Hitler had promised Stalin in their secret pact’s "Secret Protocol".
At Yalta, Stalin got all of Eastern Europe and half of Poland. But that was not fair to Poland so Stalin suggested that President Roosevelt give Poland half of pre-war Germany to settle the displaced Polish Refugees that were driven out by Russians. Then Stalin insisted on controlling half of the half that remained of what had been Germany before the war. So Roosevelt agreed it would be occupied by the Soviet Army and under Stalin’s control. The remaining one third of the original Germany was then divided into three parts under French, British, and American control and at least 5 million starving German and Eastern European refugees fled socialism into Western Germany and Western Europe. President Truman was not happy having to execute the Yalta agreement.
http://history1900s.about.com/od/worldwarii/a/nonaggression.htm
http://en.wikipedia.org/wiki/Yalta_Conference

Over 50,000 stray dogs roam the streets and vacant homes of bankrupt Detroit, replacing residents and menacing humans.
http://www.bloomberg.com/news/2013-08-21/abandoned-dogs-roam-detroit-in-packs-as-humans-dwindle.html

Wednesday the WSJ reported that Obama has NSA spying on 75% of the American internet traffic. Could this explain the WSJ report that Holder now has a pile of new cases he can bring against corporations to keep the contributions to his socialist party coming in? Do Obama’s socialist policies explain why the America’s economy continues to sink endlessly regardless of how much money Obama throws at it? Will Obama ever realize that everything socialists do is a waste of the funds that are being taken away from smart American free enterprise? Jim Cramer finally is saying we have to wake up and smell the coffee.

Aug 20 The U.S. repurchase market where banks and investors borrow and lend Treasuries shrunk to only $4.6 trillion daily outstanding last month, down 35 % from when Obama took office. Investors are becoming alarmed that the USA is getting too deep in debt to be the common currency for the world. Obama said he is saving $2 Trillion by having American small and large businesses pay for health care or pay a fine. There is only one problem with that Obama claim, and that is that the EU countries do not saddle their competing companies with Health Care cost and they all already have lower corporation taxes than American companies. So what Obama has done is shift his $2Trillion dollar socialist government burden to American free enterprise companies and that will cost Americans more than $2Trillion in lost jobs and lost income while making American products unable to compete in the global markets. We are now in what will likely become known as Obama’s lost decade.
Everyone knows that Hugo Chavez, the deceased socialist president of Venezuela, was Obama’s hero. And everyone knows Obama hates the memory of Sir Winston Churchill and insulted Britain when he sent the White House bust of Churchill back to England. Here is what the WSJ reported Monday that Obama’s friend Hugo Chavez did for Venezuela. Before Chavez, the WSJ said Venezuela was self sufficient in steel, sugar, rice, oil, beef and coffee. Now thanks to Chavez’s socialism it imports steel, sugar, rice, beef and coffee and has nationalized the oil industry. And here is the reason that Obama hates Churchill. Churchill said, "Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery."
http://www.brainyquote.com/quotes/quotes/w/winstonchu164131.html#HPwh5D3sQDgfTm7V.99
http://online.wsj.com/article/SB10001424127887323681904578640291651501034.html
http://blog.heritage.org/2012/07/12/morning-bell-obama-fails-to-see-serious-impact-of-hugo-chavez/
http://www.policymic.com/articles/15592/hugo-chavez-endorses-president-barack-obama-for-reelection

Aug 19     Barron’s this week says the EU has only kicked the debt problem down the road and Greece is getting ready to default again in a few months. Obama still refuses to bite the bullet on welfare entitlements like cell phones so the lazy can twitter their lives away and drop out of school instead of listening to their teachers in class.
The WSJ said Biden may run for president in 2016.

World Economies
http://www.bloomberg.com/news/
http://www.foxbusiness.com/index.html

Syria needs to be crushed and its leaders tried for the worst example of genocide since Pol Pot of Cambodia.

Emerging markets are suddenly faced with capital being withdrawn and rising interest costs.

Economic woes in Italy and Spain persist, meaning banks will probably be forced to set aside more provisions as consumers and businesses fall into default since the sovereign debt is unsustainable because interest rates rise and southern European economies are not yet recovering.

Benchmark 10-year bund interest rates paid climbed to the highest level in 17 months indicating that higher rates are coming to Europe as well as North America.

India is facing financial instability as the U.S. Federal Reserve QE phase out contributes to the slide in the rupee. India’s Reserve Bank said that currency weakness could stoke higher consumer-price inflation. Also India has a current-account deficit that exceeds sustainable levels, slowing growth, budget-deficits and rising bad loans at banks.
Chancellor Angela Merkel is trying to avoid a third Greek bail out until after her election.
Iceland’s central bank kept its benchmark interest rate at 6%.
Britain posted its first July budget deficit since 2010.
Gold declined as the U.S. Federal Reserve gets ready to release minutes from its last meeting that may signal when policy makers will begin to phase out QE.
China is now facing a credit crunch and recently cut their buying of American debt by over $40 billion per month. Japan cut buying too as the world loses confidence in the rise of American socialism.
Barron’s reported that the EU has not outgrown the economic problems yet and another round of EU defaults is coming soon.
Mushrooming Chinese non-performing local-government and corporate debt exceeds the magnitude that tipped other Asian nations into crisis in the late 1990s. The Chinese and American governments have both been lying in order not to frighten people but world bulk trade and rail shipments show no sign of any recovery much less real growth anywhere in the world. Corporate cannibalism has passed as growth when in fact the big fish are eating the little fish to grow and finally there is only one dead fish remaining.
Japan’s stock market appears to have topped and begun a new decline. It has declined since 1990 when it began Quantitative Easing. Obama is the first American to use QE to suppress the interest rates on national debt to allow America to take on debt until the economy collapses when as Greenspan predicted the market will force up interest rates in spite of QE.
http://finance.yahoo.com/q/bc?s=%5EN225&t=1y&l=on&z=l&q=l&c=

The German market has begun to form the second shoulder of the Head and Shoulder sell signal after failing to reach its last high. It also failed its upper resistance level reached previously in 2000 and 2007.
http://in.finance.yahoo.com/q/bc?s=%5EGDAXI

The French market has continued to decline since year 2000. At it most recent highs it is still is still down 50% from 2008 and down 60% from 2000.
http://in.finance.yahoo.com/echarts?s=%5EFCHI#symbol=^fchi;range=1y;compare=;indicator=sma+volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;
The Swiss market indicates stagnation since 2007. http://finance.yahoo.com/q/bc?s=%5ESSMI&t=my&l=on&z=l&q=l&c=

The NYSE is similar to the British and Swiss and indicates stagnation since 2007 given in excess of 15% inflation since then and no similar market advance. The NYSE index is too big to manipulate legally. It has 300 stocks just starting with the letter A.
http://finance.yahoo.com/q/bc?s=%5ENYA&t=my&l=on&z=l&q=l&c=

American Economy
Jim Cramer said the US Justice Department was what did-in Microsoft. They were too successful so the Europeans and the US Justice Department attacked Microsoft to make sure they would lose influence in the PC business and Apple and others could come in and destroy the PC business. Microsoft will be looking for a new leader and has perhaps one more chance to re-invent themselves.
It wasn’t enough that our socialists in government now manipulate America’s economic statistics almost as much as they do in socialist China, but MSNBC was literally openly lying about almost every statistic until this week.

Aug 21
MBA Mortgage Index 08/17 -4.6% down again after the last -4.7% ----
Existing Home Sales Jul 5.39M up slightly from 5.08M ++
Crude Inventories 08/17 -1.428M down again -2.812M -
FOMC Minutes 7/31 indicate QE3 phase out is starting -

Aug 22
Initial Claims 08/17 336K up from 320K --
Continuing Claims 08/10 2999K up from 2969K --
FHFA Housing Price Index Jun 0.7% held at 0.7% +
Leading Indicators Jul 0.6% up from 0.0% unbelievable reporting chaos
Natural Gas Inventories 08/17 57 bcf down from 65 bcf -

The Markets Aug 23, 2013
A flash crash was averted Thursday by containing it as a flash freeze. The exchanges are rigged against the small investors who are not even allowed to put in low-ball orders. But by rapidly dropping a stock price a high frequency trader can drop a price precipitously. Why not let the small investor put in high ball sell orders and low ball buy orders and absorb some profits while stabilizing the market instead of making the high frequency traders rich when they destabilize the market to get the same % profit and wipe out small investors who have stop loss orders.

Tight money is now putting pressure on emerging markets.
The stock market decline is slowly accelerating as short sellers grow profits, and cover, and then short a different stock that has not declined much. During a decline much of the shorting is automated to rotate out of the stocks that meet target declines and into shorting the stocks with the longest way to go. It becomes a frenzy but many stocks will be bargains again when they are 20% to 40% cheaper. The real threat is that Obama’s socialist waste will cause an economic depression.

On Monday the market broke the downside resistance levels for price and cash flow. On Tuesday it broke the fall. The last time it did that a few times about a month ago and the market subsequently dropped 5% before rising again. But this last time the cash flow did not break its previous high giving another indication that this bull market is over for now. But people will argue that no banks are failing yet. Those people should be reminded that the market peaked in the third quarter of 2007 and the panic took a year to materialize. We just heard the truth about Morgan Stanley and they were losing hundreds of millions on their "whale" when they were claiming only millions. The greatest threat now is a US market panic caused by a cash crunch in China which would dry up world purchases of USA treasuries and drive up USA debt costs quickly. Also according to the WSJ Greece is getting ready to announce their third default. The EU has made even less progress than the Obama administration. Obama openly admits he prefers the European for of socialism to American free enterprise. The worst thing Obama could cause is the world going off the US Dollar and to an international basket of currencies. Treasuries would plummet in value and interest on debt could drive the Obama administration towards bankruptcy along with many American cities and a few states.
The probability is growing that the stock market probably will not see a significantly new high for about four to six years. Jimmy Carter had a sideways market movement with his lost decade of in the 1970’s. We are now in Obama’s lost decade.

We got our market cash flow sell signal July 8. About half the time it happens near the start of the stock market’s last-gasp rally so it is possible to get out before the plunge.
World trade has been dead for four years (flat lined). Look at the last 5 years! It still looks close to zero growth.
http://www.bloomberg.com/quote/BDIY:IND/chart

The VIX indicates extreme complacency with the worst about to come. The VIX would normally top out above 30 or even 70 before the bear market ends.
http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c=

World market updates:
http://finance.yahoo.com/intlindices?e=europe
http://finance.yahoo.com/intlindices?e=asia