Aug 29 It appears Britain will now lead the free world in reaction to the vacuum left by the socialist Obama administration. World travel may be severely restricted. The Prime Minister referred to the threat as Islamic terrorist poison.

The long awaited sell signal has not occurred but it feels as though when it occurs it will shake the world more than the Liar-Loan Derivatives market did in 2007 or the earlier off-the-books, now illegal accounting practices and DOT COM bubble did in 2000.  Deflation, or depression followed by hyperinflation are even on the table now.  Even Germany is now slipping into deflation.  Quantitative easing must be ended because if you look at the Japanese economy, the Japanese QE in the early 1990’s ended their economic renaissance.

Aug 28   Christians are often conflicted because socialists like to say that Christ was a socialist at heart.  After all Christian charity is obviously a form of redistribution of wealth.  But it is obviously not socialism because it is not an entitlement for anyone nor is it an obligation for others.  It is a free choice and an act of love and willingness  to sacrifice to help others in need.  American kindness was the idea behind the “Thousand Points of Light” of President Bush Sr.  American love and charity was how penniless immigrants once survived on the goodness and kindness of Americans.  That is why we had so many ethnic churches, clubs, and organizations to connect the immigrants with opportunities, with jobs.  

 

And America was much better for it, and the people who gave us what we have today were much better than we are today with our welfare, and our legions of state and federal make-work employees all unionized and clamoring for more time off and bigger pensions.   Ultimately under socialism, everyone must be a government employee or like the great Russian physicist Solzhenitsyn they are punished for their thoughts  and have to live off the charity of friends and relatives. 

 

It is primarily Christians who are working to stem the spread of Ebola in Africa.  Creeping socialism is destroying America by outlawing and discriminating against Christian Hospitals in socialized medicine and anything related to the socialist government that is growing.   But you behead others, or you have a weird fetish, or in your religion we can have nine year old children in our harem, and then you can do as you please, but don’t advertise it.   The liberals don’t want to know how rotten socialism actually is.  We now have thousands of children in sex slavery, and Great Britain is now finally cracking down on their Moslem Pakistani problem.  The liberals and socialists tend to be blind to reality, possibly because they have never visited socialist countries or watch the world news to see what it is like.  And many of the liberals are mentally ill and convert or have joined ISIS.  It is estimated that about 400  Americans are in the ranks of ISIS and even more are from England.  

Americans need to come to their senses before it is not too late.  It is obvious that the Obama administration had the American Intelligence agencies taping all the lines of the New Jersey governor’s staff and applied complex algorithms to come up with a single staff conversation that sounded suspicious to them.  The two staff members deny the accusation.  How many years does it take to press charges if they are real?  That does not matter to socialists because they are breaking the American Constitution to harass all political opponents with accusations.  They are no better than Stalin and Hitler were when they started their power grabs. J'accuse is the method this administration has used even to prevent Historical Societies from renewing their tax exempt status.

 

Aug 26 The feudalistic and religious governments of the dark ages and the Middle Ages were obviously socialist governments. What makes it difficult for religious Americans is that they know socialism doesn’t work because humans are not perfect. If we were perfect we could not be corrupted by socialism. The Pilgrims arrived at Plymouth Colony in 1620 and began the New World’s first government experiment in socialism. William Bradford was governor of Plymouth Plantation, the small community of Pilgrims who arrived in what is now Massachusetts a full decade before the great migration of Puritans from England to the Bay Colony, now Boston. Bradford's history of the Pilgrims was written as his journal and it admits socialism failed within two years with a loss of 50% of the colonists to starvation. There is in fact only one documented example in the history of the human species where socialism was reported to have succeeded without the need of continuous looting, genocide and wars. That is in the reported life of Christ, where Christ is said to have fed thousands of people from the redistribution of the collection of wealth consisting of a small number of loaves and fishes. After all, what greater miracle could Christ possibly perform than to actually make socialism work somewhere on earth? By bringing good people back from the dead Christ did the direct opposite of what socialism is famous for doing best, falsely convicting, imprisoning, and putting good people to death.

 

The sociopath feudalistic socialist politicians like Putin don’t believe in Christ or charity but think of themselves as emperors with entitlements.  They are especially indignant that intelligent and creative people can make so much more money than they can.  Others like those in the Obama administration try to punish everyone who can compete politically, by illegally investigating (for the purpose of destroying opposition) by tapping their phone and computer lines (e.g. Christy et al).  These socialists also often set up their opponents’ naïve relatives with legal transactions to then try to connect and politically embarrass numerous Governors who had nothing to do with those transactions that new regulations make illegal for elected officials.  That is what corrupt administration politicians are now actively doing to destroy the decent political competitors who are potential presidential candidates to go up against Hillary Clinton in 2015.   The name of the game for corrupt politicians is to create new rules and regulations to make many things illegal for politicians but not necessarily illegal for private citizens.   These same corrupt socialists have also done illegal gun running to Mexico’s drug lords, wire tapping, IRS harassment, in addition to smearing their honest opponents.  The naïve relatives, friends, and employees of the honest politicians cannot be convicted of anything, but they are being used to smear the political opponents of this corrupt socialist administration that has caused the death of an estimated 30,000+ Mexicans with the guns they smuggled in to drug lords, originally to smear the American Riffle Association and all American gun holders in general.   To see so many governors now being smeared is reminiscent of the two well known socialists, Stalin and Hitler.  Even Putin is not up to the level of this administration’s type of political corruption.

 

http://www.nbcnews.com/storyline/christie-bridge-scandal/second-bridge-investigation-linked-chris-christie-n139166

http://www.nytimes.com/2014/08/23/us/virginias-mcdonnell-tells-of-pursuing-loan-from-businessman.html?_r=0

http://www.jsonline.com/news/statepolitics/walker-says-he-was-unaware-of-700000-donation-from-mining-company-b99336817z1-272433211.html

 http://online.wsj.com/articles/illinois-gov-pat-quinns-re-election-hampered-by-criminal-investigation-1405560943

 

So far the worst politicians are winning in the world because socialists are in control of most national educational systems and are producing ignorant politically correct corrupted graduates like themselves who need entitlements for grants and other handouts to get ahead.  But the sociopath groups are taking control in the Mid East and Africa and they make our Western incompetent and corrupt socialist leaders look good in comparison.

 

  The socialists know and don’t admit that all those smart rich people are only rich on average for about 30 to 40 years and then they die and their wealth is redistributed with much of it going into charitable foundations.  J P Morgan was the richest American tycoon in the history of capitalism (in constant dollars), and most people don’t even know his foundations are now run by socialist liberals trying to get their stupid followers educated enough to be good feudalist socialists and to destroy free enterprise and capitalism.   The socialists don’t really care that all American wealth is automatically redistributed.  The socialists want to control the natural American redistribution because they themselves are parasites and they want the money for themselves and friends.  The American system does what Warren Buffet and Steve Jobs have done.  Good and decent Americans realize that money and power corrupt people and they start to want something for nothing so they tend to become corrupt socialists or completely degenerate.  Intelligent entrepreneurs know money is poison to people who have not earned it just as indiscriminate welfare or other redistribution of wealth destroys the ambition and self respect of the recipients.  

 

PhD Thomas Piketty published research showing that returns on capital historically outstrips gains from economic growth.  So what if the people who finance growth earn more than the entrepreneurs that create products that sell.  That is because they finance many others who do not succeed.  You would think a college PhD could figure that out. 

 

But this is a sign that the current bubble is about to burst because this excess capital always peaks during economic bubbles because apparently the business failures begin to spike and the successes begin to flatten out.  Right now it is at a peak.

 

Last month, research by European Central Bank economist Philip Vermeulen and London School of Economics’ Gabriel Zucman showed that the wealth of the super-affluent is undercounted.  So what again!  These stupid PhD’s have not figured out that in about 40 years we all inherit the rich people’s money and it is recycled in free countries such the USA and then the stupid PhDs and everyone else get their recycled money. 

There are no Warren Buffet or JP Morgan aristocracies because aristocracies are created only by feudalistic socialists who have no interest in working, or new ideas.  

The old Aristocracies were socialist feudal societies, with each farming community that they ruled.  The aristocrats were descendants of feudalist warriors who rampaged, murdered and pillaged to accumulate wealth (like Putin).   But the new affluent American founders were once great leaders but the growth of corrupt government cronyism is creating a new feudalist aristocracy of socialists who historically have ruled and destroyed every economy they touched.  That is why we need to shrink government, not grow it like it.

 

The American race problem identified.

http://www.cnsnews.com/video/national/oreilly-americas-race-problem

 

World Economy

Aug 29

The free world is going into a state of shock.   Britain just raised the terror threat level to the second highest level, severe.  500 Brits are now Islamic terrorists.  It appears Britain will now lead the free world. 

 

 The anniversary of 9-11 is within two weeks.   Forty three NATO peace keepers in the Golan Heights guarding Lebanon and Israel were just abducted. 

 

The Ottoman Empire conducted genocide against Armenians just the way it is being done against non Moslems in Syria and Iraq today and Turkey and the others continue to deny it and the holocaust of Jews.  But now we can see their religion in action once again and still Moslems in America say nothing and toe the line.

 

The Russian army has now officially invaded the Ukraine apparently to provide a land bridge to Crimea.

 

The German economy has now tilted into deflation.  Terrorism and economic problems preceded both world wars.

 

 

Aug 26

Socialists Argentina revokes authorization for officials at BNY Mellon to defraud American’s who invested in Argentina’s socialist government.  Let that be a lesson to foolish Americans who support socialism here and abroad.

Aug 25

Sebastian Stein a medical worker in Africa says Ebola has a specific indescribable smell.   “It’s full on. It’s in your face,” So does world feudalist Communism and Moslem Caliphates.  It is the smell of death, rotting people and rotten national leadership. 

Stagnation has prompted yet another feudalist socialist government’s collapse.   President Francois Hollande was forced into the third major change of his ministerial team in two years of socialist failures.

Government housing and incompetent government planners in China has proven that government cannot create real wealth and do not understand that innovators need free enterprise not empty or decaying cities that the feudalist socialists apparently think stimulate the economy.   The Chinese politicians have built many empty cities as monuments to feudalist /socialist stupidity.  The dead weight of socialism is dragging the Chinese economy down and adds to growing world instability.  Chinese military pilots continue to harass aircraft in international territory.

Hitler led the feudalist nationalist socialists from the beer halls.  Stalin led the feudalist international socialists in the streets.

 

 

 

The European FTSE is at the highs of 2000 and 2007 but MSNBC/PRAVDA is still saying buy and by-by.

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

If you look at Germany where the people have perhaps the strongest work ethic in the world, their stock market has topped out too but their trend is upward only because the dollar is continually weakening.

http://finance.yahoo.com/q/bc?s=%5EGDAXI+Basic+Chart&t=my

Japan’s stock market appears to have topped and begun a new decline. It has declined since 1990 when it began Quantitative Easing because their Yen is dropping faster than the dollar.

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

 

The French market is only about 60% of what it was fourteen years ago. 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 still indicates stagnation since 2007. It has hit the highs of 2003 but could not make it to the highs of 2007. Obama has destroyed Swiss banking by attacking Swiss confidentiality that had protected people from the Hitlers and Stalins of the past.

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

 

American Economy

Obama must have made all his advisors learn the new Common Core Mathematics.  The numbers seldom make sense and tend to make Obama stagnation look like prosperity.

Aug 25

New Home Sales Jul 412K down sharply from 422K ---

Aug 26

Durable Orders Jul 22.6% up from  1.7% socialist nonsense

Durable Goods -ex transportation Jul -0.8% down from 1.9% unlikely

Case-Shiller 20-city Index Jun 8.1% down slightly 9.3% -

FHFA Housing Price Index Jun 0.4% flat 0.4% - we need this to increase

Consumer Confidence Aug 92.4 up from 90.9   This is very questionable for stores that employ people

Aug 27

MBA Mortgage Index 08/23 2.8% up from 1.4%  This is good but inconsistent with the flat year so far.

Aug 28

Initial Claims 08/23 298K peaked at 298K --
Continuing Claims 08/16 2527K increased from 2500K --
GDP - Second Estimate Q2 4.2% up from 4.0% +
GDP Deflator - Second Estimate Q2 2.1% up from 2.0% -
Pending Home Sales Jul 3.3% improved from -1.1% +
Aug 29
Personal Income Jul 0.2% sharply lower from 0.5% ---
Personal Spending Jul -0.1% sharply lower from 0.4% ---
PCE Prices - Core Jul 0.1% flat deflation 0.1% --
Chicago PMI Aug 64.3 sharply higher 52.6 a most manipulated statistic
Michigan Sentiment - Final Aug 82.5 supports confidence 79.2 ++


The Markets

Aug 29

The markets and the world sit on the edge of a precipice.  But the panic has not started just yet and we have not yet gotten a sell signal.  But you can almost feel a panic starting.

Aug 26

Volume continues to slide.  Our indictor still needs a sharp sell off on high volume to trigger the sell sign.  

Others think we are only about a week away for other indicators to break down.  A few weeks ago we showed several public indicators that pointed to a downturn occurring about the beginning of September.    But usually there is a recovery of about half the first decline before a long term bear market decline ensues.   A very careful person could consider shorting a company that is beginning and covering it about a week after the first decline of close to 10%.  After the first sharp sell off there will be some very good stocks that should not be down much more than 10%.  A very careful person could consider cherry picking those strong companies that are still strong but also consider getting back out just before they recover from the first sell off loss.  After that first sell off and recovery we expect traders to pile in short selling.

 

Google has a search machine with many good selections and you can save the results in an Excel spreadsheet and capture the HTML’s that let you automatically plot each case that you want to look at.

 

 Look at the volatility index and you see that the market could fall much faster when volume gets back to normal. This market has little volume or volatility.  So when volume picks up past history says the market will plunge.  This is not a good moment in time for holding equities.

http://finance.yahoo.com/q/bc?s=%5EVIX&t=3m&l=on&z=l&q=l&c=

 

 World market updates:

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

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

https://in.finance.yahoo.com/intlindices?e=americas