December 6, 2013 Rates are rising again on treasuries even though the Fed still buys 1$Trillion of them a year. The Fed intends to continue to loan the banks money at sort term rates below 0.5% to continue in inflate their balance sheets. Rising rates are the beginning of inflation due to the Fed flooding the dollar. It seems that American business liked the government shutdown and has become more optimistic that Congress will get control of government spending. According to the Obama Labor Department’s monthly gauge, U.S. private employers added a total of 215,000 jobs in November. Small businesses with fewer than 50 employees added a healthy 102,000 jobs to that total.

Mortgage rates are also rising again.
http://blog.altosresearch.com/wp-content/uploads/2013/05/mortgage-rates-may-2013.png

Foreclosures of homes are on the rise again.
http://www.hartanovteam.com/images/sc-rate-mar_2013_425.jpg

Even though mortgage rates are rising, in the early stage it helps the market because these low rates will not be seen again until the next incompetent socialist president destroys the economy again. That will not likely happen for a long time. After the incompetent President Jimmy Carter we did not see another socialist until President Husein
http://www.bostonglobe.com/business/2013/11/30/rising-interest-rates-weigh-real-estate-funds/JQdbRMsI6GGGvOPujwqTEP/story.html

　
President Obama finally acknowledged on Thursday that he lived with his illegal immigrant Kenyan uncle for a few weeks in the 1980s, contradicting a statement more than a year ago that the Obama White House had no record of the two ever meeting. Their relationship came into question on Tuesday at the deportation hearing of his uncle, Onyango Obama, in Boston immigration court. His uncle had lived in the United States illegally since ordered to leave in 1992 and yet has been issued a drivers license and is said to have voted for Obama. Shortly after his last arrest for drunken driving in Framingham he told an officer, "I think I will call the White House." Onyango Obama is another relative from the president’s paternal side to have violated immigration law. Onyango Obama’s younger sister, Zeituni Onyango, also violated a deportation order and lives in Boston on welfare in public housing. Her presence and her illegal status were suppressed by the biased socialist media until after the election. Based in part on the fact that everyone now knows about her and her increased outspoken criticism of America, a Boston immigration judge granted her asylum last year to spare Obama further embarrassment. His Uncle just got his asylum this week. There are still some Americans who think that Obama is the first illegal immigrant to become an American president. But if that were true, based on the lies and the time it has been taken to reveal Onyango and Zeituni there could be no real investigation of Barack Hussein Obama until all the socialists are thrown out of office.
http://www.youtube.com/watch?v=QHoAuk76fT8
http://www.conservapedia.com/Barack_Hussein_Obama

December 4, 2013
The low interest rates of the Bernanke FED have done nothing for the economy for five years because when you put a nation into an economic depression with a socialist mentality… low interest rates become only an attempt to "Push on a String." Everyone said that when FDR was president too. He was also initially very popular until he began stacking the Supreme Court to circumvent the American Constitution and giving away the "wealth of our nation." American poverty is now growing by leaps and bounds because we allow the immigration of hard working people who simply do not have the skills to find jobs in our highly technological country. You cannot run the American Technological economy anymore with hunters, gatherers, and farmers.
We couldn’t even run the old American industrialized economy that way. In fact many socialist teachers think they are so smart and socially smooth that they don’t have to actually teach much less study to teach because they are just so cool. American students consequently now rank 26th in the world while our jobs rank #1 in technological skill level.
Finland ranks near the top in education and is the only euro member still to have a stable outlook with its AAA grade at Moody’s Investors Service, Standard & Poor’s and Fitch Ratings and pays less to borrow relative to any other nation. Credit-default swaps imply that Finland is a safer investment than the U.S. or Germany. Yet people in the euro area’s highest-rated economy are too afraid to take on more debt as Finland’s economy falters. Prime Minister Jyrki Katainen has repeatedly failed just as President Obama has with the economic opiate QE policy that keeps borrowing costs low by pumping Quantitative Easing stimulant into American dead debt to keep it from rotting. Finland is slowly becoming a mummified socialist economy just like the Obama economy. Detroit’s decay gives America an example of the stench of death of "out of control socialist unions" featherbedding the Obama government with the kind of gross incompetence demonstrated by the Obama Administration and its rollout of socialized medicine.
http://upstart.bizjournals.com/news/wire/2013/11/15/finland-prime-minister-wants-startups.html?page=all
None of Africa, the Mid East or China was tested
http://www.washingtonpost.com/blogs/worldviews/wp/2013/12/03/a-revealing-map-of-how-students-around-the-world-test-on-math-science-and-reading/

World Economies December 6, 2013
Fortunately time heals all wounds. Nelson Mandela a healer of wounds died on December 4, 2013.
Inflation has started in Great Britain and interest rates will soon rise there as well. Reports this week showed Market’s factory activity index increased to 58.4 in November from 56.5 in October. Its construction gauge rose to 62.6 from 59.4. This is a sign the economy has bottomed and deflation is no longer a concern. In services, input-cost inflation hit a nine-month high while output charges rose to the most marked degree since May 2011.
Japan’s stock market appears to have topped and begun a new decline. It has declined since 1990 when it began Quantitative Easing.
http://in.finance.yahoo.com/q/bc?s=%5EFCHI&t=my&l=on&z=l&q=l&c=

The German market is the best of the foreign markets and is about 10% above the 2007 high which was about 7% above the 2000 high. It failed to break out from its upper resistance level defined by 2000 and 2007 or the short term trend. It is now right at the limits and that usually ends a trend of this length.
http://in.finance.yahoo.com/q/bc?s=%5EGDAXI&t=my&l=on&z=l&q=l&c=

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/q/bc?s=%5EFCHI&t=my&l=on&z=l&q=l&c=
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
One third of the growth of the U.S. economy July-September quarter was due to a huge inventory build-up. If it sells it will be great news. But factory orders in October were down sharply after the buildup of inventory.
Dec 2
ISM Index Nov 57.3 up from 56.4 +
Construction Spending Sep -0.3% sharply lower from 0.6% Due to fake Obama numbers
Construction Spending Oct 0.8% 0.3% up from -0.3% Dec 04 Back to normal again
Dec 4
MBA Mortgage Index 11/30 -12.8% down from -0.3% --- possibly fake Obama numbers again. The real question is does this Administration fake numbers or is it just gross administration incompetence
ADP Employment Change Nov 215K up from 130K but flat 5mo average
Trade Balance Oct -$40.6B deficit flat at -$41.8B
Dec 05
Challenger Job Cuts Nov -20.6% NA NA -4.2%
Initial Claims 11/30 298K 335K 330K 321K 316K
Continuing Claims 11/23 2744K 2850K 2850K 2765K 2776K
GDP - Second Estimate Q3 3.6% 3.1% 3.0% 2.8%
GDP Deflator - Second Estimate Q3 2.0% 1.8% 1.9% 1.9%
Factory Orders Oct -0.9% factory orders down sharply 1.7%

The Markets Dec 6, 2013
There are signs of recovery in the pick-up of some maintenance industries. The average automobile is now on the road 11 years and buildings are in a need of maintenance after years of neglect.
When a meltdown begins and stock prices drop the CEO says it makes no sense to fight the market. Instead he says lets get honest and mark down the value of the things that went wrong when stock prices were high. And consequently the stock market becomes the cause of the mark downs and is called a leading indicator because there are write-offs that are self fulfilling reasons for not investing. We have had a long stock market run-up and there are a lot of dead bodies hidden away at values far in excess of their zero value today. That is why the longer it takes for the bear market to come, the deeper it will fall. Remember that if you bought the NYSE in 2000 or 2007 you lost about 65% of your money by 2002 and again in 2008 and today you have doubled your money twice from the lows but you still are only a little better off than in 2000. You would have been up 400% if you got out completely at the tops and completely in at the bottoms. It is smarter to lighten up after 4yrs of stock market advances but still participate.
We are in a zone of four or more months after the Hindenburg OMEN when a stock market meltdown usually (but not always) occurs. During a free market the alpha method works great because there are good stocks to buy and bad stocks to sell in every sector. But then the MSNBC market manipulators begin pumping stocks by the whole sector and this is made worse by the sector funds where people buy the whole sector. Gradually the ability to use alpha profitably diminishes because all the stocks in a sector then tend to move together. Now short sellers begin to go in and out of the sectors exaggerating the swings as the market average advances. That leads to polarization because the stocks in some sectors hit new highs while the stocks in the shorted sectors are hitting lows. That is when the Hindenburg Omen occurs.
But as the stock market gets into the final frothy stage the MSNBC market manipulators don’t have enough stocks to pump up so they go into the stocks that the hedge funds shorted. That panics the short sellers who then have to buy back their shorted stocks to cover their shorts and that ends the Hindenburg omen because it is no longer polarized but is even frothier.
That is where we are today and very often the market can go no further. Once the market can’t squeak out any new highs the shorts come back in full force and as the market goes down their profits grow. If their stocks drop 50% they have 50% more money to use to short even more other stocks. It has nothing to do with projected earnings and the corporations now must prepare for the worst. The drop of the market due to the short selling becomes a self fulfilling prophecy and then we in our ignorance think the stock market is just a leading indicator when in most instances it causes the economic swings.
We have said for a long time that the Obama Administration sometimes manipulates certain economic numbers to make them look good and then revises them back closer to the truth (off camera) before the next release so they can revise the next set and lie again if things are not going well. The MSNBC/Obama/Pravda stock market commentators never look back they seem to love the phony optimism. They did the manipulation in spades before the last election and even made GGP looking like we were coming out of the Obama Depression. Congress said Tuesday that they will investigate how the Unemployment numbers plummeted just before the election and then went back up in the Christmas season when more people were hired. It makes no sense. And the FED is no use if the numbers are phony Obama numbers.
http://washingtonexaminer.com/congress-will-investigate-report-of-faked-pre-election-jobs-data/article/2539413
Market rotation continues as QE floods America with cash creating jobless stock market bubbles and wasting human capital. 　
Markets can remain irrational longer than you can remain solvent –John Maynard Keynes.

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