Sunday, June 28, 2015

July 2, 2015 The untruthful Obama claim of a jobs recovery rewrites the definition of full employment. That is a polite way the Washington Post has of saying that the Obama administration has been the most incompetent, corrupt, and prevaricating administration in the history of the USA and you especially cannot believe anything good he says about the economic Great Depression he is slowly and meticulously creating. At the current rate we will have the Obama depression before the 2016 election cycle. But first we expect a world wide stock market panic.

            It appears the world stock markets are ready to enter the end stage of the Obama economic recovery, and with Obama leading from behind we should enter the first phase of an Obama economic depression.
            When the East Germans were freed from socialism in 1989, the popular quote was, “We pretended to work and the socialists pretended to pay us.  That is how it is in Greece today.  To European socialists, freedom and austerity still have the unpopular connotation of having to get off one’s duff to actually do some work or else be fired and have to find a real job.   Free enterprise is awful for someone raised in a socialist cradle to grave rest home work environment.   They think Germans and Americans are nuts when we say that they should enjoy working for a living.    People with real skills and real intelligence actually do find or make their jobs something they enjoy doing.  Stocks surged on the report Greece was ready to accept demands then fell on the report Greece's Tsipras was against a bailout.  That flip flop was the work of the numerous CNBC and MSNBC commentators like Jim Cramer who always praise corporate idiots who meet their desired targets and ridicule intelligent corporate leaders who give the unwanted truth, especially when the bubble is about to pop.   The regulators have suggested that CEO be fined when they overstate sales, revenue, or profit.  First they need to fire Jim Crammer who has a wall of shame to mock CEO’s who tell the truth.
Initial Unemployment Claims 06/27 281K up from 271K -
Continuing Claims 06/20 2264K up from 2247K
Nonfarm Payrolls Jun 223K declined from 280K
Nonfarm Private Payrolls Jun 223K declined from 262K
Hourly Earnings Jun 0.0% declined from 0.3%
            Puerto Rico's problems ($71 billion debt) are only 2% of the $3.7 trillion U.S. problematic municipal bond market debt.  California ($778billion debt), Chicago ($63billion debt), Detroit ($20billion debt), NYC ($110billion debt), and Illinois ($127billion debt) are ready to go under next.  While workers paid in for their Social Security retirement benefits, Obama, Clinton, Carter and other stupid party leaders have added millions of people with claimed needs and disabilities and many of the unemployed to the Social Security fund to the extent that in twenty years Social Security will have nothing left for the retired workers who are the only ones who actual paid for their retirement.  Who really believes the Stupid Party cares about workers?  The Stupid Party cares only about buying votes and not even if you are a US citizen when you vote.   On top of the $3.7 trillion municipal debt Obama now has the USA in debt to the tune of $18 trillion.  The Greek debt is only $330 billion or 0.9% of our municipal debt or less than 0.1% of our total US debt.  Greece is about as economically significant as the state of Alabama.  The real problem is the socialists wherever and whenever they are elected.
            The private job growth rate is at the level seen when the economy peaked and turned down in 2007.
The growth in the U.S. manufacturing sector dropped in June, hitting its slowest pace since October 2013.
            July 1, 2015   There is a growing convergence of unsettling news as the 2015 Stock Market Bubble implodes.  We have reached the point where low interest credit no longer helps the economy as all the investment worms and government parasites spread the something-for-nothing economic contagion.  Puerto Rico and Brazil were quick to hold out their hands.   Many of the high flying corporations are shell games with hidden losses, or Ponzi schemes where they load up with debt and pretend it is profit.  But once the bank letters of credit expire many small growth companies will be worthless.
            The US MBA Mortgage Index 06/27 plunged -4.7% indicating home sales will plunge in the coming month. 
            China now admits manipulating their stock market and plans to double down on it as a way to fleece foreign investors and keep floundering corporations in their declining economy afloat.  Of course that is a disaster in the making if the free world withdraws their money and the policy could conceivably even bankrupt China. 
            Obama plans to change overtime rules in another stupid party economic screw-up of American technological industries.  Scientists and Engineers and many great corporate leaders have their minds on their jobs almost every waking hour.  That is because creative people who love their work do not work just for the money.  It is a real pleasure for them.  Edison is an excellent example and he had a cot in his office and took power naps to keep working.  Obama and his “stupid party” obviously do not understand brilliant and creative people at all and his effort to force companies to pay more overtime is something they need in Russia or Moslem Indonesia where Obama grew up.  
            American law requires that a child be born in America not just of an American mother in order to be an American president.  The reason Obama’s birth certificate was challenged was because it was on a modern form not on the form used in Hawaii at the time of his birth.  There was never a question that he was an American.  The question was whether the Hawaiian document was forged so that he could run for president.  CT Senator Lowell Weicher could not run because he was born in Paris.
      A Federal Court ruled that Apple conspired with five publishers to increase e-book prices.  The fine is estimated to be $450 million.
http://www.reuters.com/article/2015/06/30/us-apple-ebooks-decision-idUSKCN0PA1RS20150630
            Nike co-founder resigns as investigations of Soccer bribes continue.
 
June 30, 2015  Case-Shiller 20-city Index Apr 4.9% down from 5.0% -
Chicago PMI Jun 49.4, less than 50 means contraction of business in Chicago.
Consumer Confidence Jun 101.4, almost the same as when the last stock market bubble popped on 2007, but 35% lower than when the DotCom bubble popped in 2000.
            Stock markets in Europe and Asia fell sharply Monday, and U.S. shares dropped about 2%, as investors fled to safer investments after the Greek government closed banks Monday and the crisis over the country's membership in the Eurozone reached the end of the line.  France's CAC 40 index was fell 3.7%, while Germany's DAX fell about 3.6%.  Japan's Nikkei was off 2.9% and Hong Kong's Hang Seng index was off nearly as much.              The contagion is spreading.  Puerto Rico, Portugal, Spain, and Italy could be next.  Economist Larry Kotlikoff warned the Senate Budget Committee that Greece is more solvent than the United States.  The fiscal gap is “the difference between government’s projected financial obligations and the present value of all projected future tax and other receipts.” The projected financial obligations are also known as “unfunded liabilities” such as future Social Security payouts.  Social Security is completely funded by the workers but so much is spent on welfare that Lyndon, Jimmy, Bill, and Hussein have left none of the money for retired people.  We have to borrow more all the time.  At over $210 trillion, the U.S.’s fiscal gap is higher than most of the world’s economic basket cases.
            The only way to stop the fraud that allows manipulators like Jim Cramer and others perpetuate stock market bubbles is to throw the CEO’s who fraudulently report higher revenue or higher income in jail and take away all their ill gotten gains.  As we warned before, the bubble is now popping and as it does we will see how many companies are fraudulently inflating revenues and profits.  Private equity giant Kohlberg Kravis Roberts & Co. will pay $30 million to settle civil charges that it misallocated more than $17 million in expenses and breached its fiduciary duty to its clients.  The settlement just brought by the Securities and Exchange Commission is in an area that the SEC is actively investigating throughout the industry.  The case is centered on "broken deal" expenses relating to the firm's unsuccessful investments.   Expenses, totaling $338 million over a six-year period were incurred by KKR’s investors such as pension funds, endowments and other institutional investors in KKR's flagship private equity funds.  However KKR did not disclose to these fund investors that its own company did not pay a cent of any of these loses even though they were investing in the same companies as the flagship funds' investors.  KKR only took a share of the profits not the losses and therefore their fraud made their books look good to stockholders even though they were poorly run companies of corrupt executives.
            Pending Home Sales in May were at 0.9% down from 3.4% last month.    The Obama administration plays a role in inflating the stock market bubble by faking the economic statistics.  The Obama administration actually reduced the value given last month to make the current month look better than it was. Price increases have also slowed compared to last year, rising 4.1% year-over-year in March.
            June 29, 2015  Bloomberg Businessweek reported that Walmart legally is cheating Americans out of taxes by hiding $78 billion through a web of 78 offshore branches and subsidiaries in Luxembourg and other wealthy nations where they have no Walmart stores at all.  Luxembourg enjoys the highest per capita income in the world thanks to traitor American corporations like Walmart that pay minimal tax protection fees for their services.  Walmart reported $1,300,000,000 in profits from 2010 to 2013 paying less than 1% in taxes by that method.   It is just another reason to avoid Walmart until they replace their CEO who opposes the Bill of Rights freedom of religion.  Obama’s current tax rate is 30% plus fines and penalties.  A Republican administration would reduce corporate taxes to 15% plus interest and that would result in a windfall of back Walmart and other hidden offshore taxes for Americans.
            Greece owes a large debt payment by the end of Tuesday, and has scheduled a referendum for next Sunday on whether to accept the terms of an offer from its creditors to release bailout aid needed to meet its financial obligations.  Greece’s Prime Minister Alexis Tsipras announced Sunday night that banks would be closed as of Monday as the ruptured debt negotiations with the nation’s creditors began raising alarm in Washington, Brussels and Berlin.  “There Will Be No Grace Period for Greece,” IMF's Lagarde said.  The emergency measures and unpredictable state of a crisis could now ripple through global financial markets.
            Puerto Rico is struggling with a $73 billion debt load and faltering economy and is facing crunch time this week with a July 1 deadline to make a $655 million payment on its general obligation debt, while its struggling utility PREPA faces a $400 million payment. 
            Low interest rates have put corporations and nations on a borrowing spree and in a precarious situation. Just as falling interest rates have supported asset valuation gains in recent years, the FED normalization will generate losses and Banks' equity capital will shrink.  Corporations that went into heavy debt to buy back shares to push their corporation share prices up into the stratosphere would be facing earnings losses as higher interest rates on their heavy debt takes effect.  PE ratios would plummet and go negative as the low interest rate bubble pops.  But while that happens millions of share holders would scramble to dump their share quickly to try to avoid the losses.  Jim Crammer will then wake up and say, “They’re all crazy, sell, sell, sell.”  So far that scenario is still likely to occur by the end of this year.
            China's central bank cut interest rates again on Saturday and reduced reserves that certain banks must hold just one day after the Shanghai and Shenzhen stock markets plunged more than 7 per cent.  Japan’s stock market also appeared to be showing signs of instability Sunday night EST.
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