Monday, July 6, 2015

July 10 2015 Today the WSJ reported today that economic growth throughout the world is now predicted to drop this year to the lowest levels seen since 2009. The contraction has begun already and China for the first time could see RED. Already China has discovered that trying to manipulate their stock market is fraught with danger. If they continue to harass stock sellers and short sellers no one will be willing to buy their stocks and rich entrepreneurs will retire and flee to the Free World. China could soon face a tremendous brain drain.

            We have talked many times about how during a stock market bubble corporations are pressured by some Mad Money stock commentators and hedge funds to distort earnings to artificially reduce their PE not by increasing profits.  Even Apple recently did the legal manipulation.  There are also ways to manipulate PE fraudulently like Enron did but there are legal ways extensively used to deceive and drop the corporation PE by going into debt (at current low interest rates) to buy back shares so that the earnings of each outstanding share increases substantially due to that manipulation.  This has allowed stock prices to reach yr 2000 and yr 2007 bubble levels without a corresponding increase to its P/E because the FED has flooded the stock market with cash to buy back their stock at a record low interest rate.  This is now entirely out of control.  Some American corporations are heavily in debt because the FED has kept interest rates at about a third of what they normally are during a market bubble.  Apple distorted their PE too by using their cash to buy back their stock.  Thus many corporations have completely distorted their PE ratios and could actually go bankrupt when this bubble pops and the economy declines or when interest rates increase.  Once the bankruptcies begin the creditors will see their risk and raise interest rates causing cascading waves of corporate insolvency.
            This Obama administration must now be the most racist administration in the history of America.  Kate Steinle was murdered by an illegal immigrant who had multiple violent crimes and deportations but her name is not even mentioned by Obama because she is not of the “right” color.  Another white man was filmed being beaten unconscious by a mob and again this administration says nothing about this obvious racism which has been put up on national TV.  Those American racist idiots would like to change the American Constitution because some of the signers owned slaves.  Those racists don’t know that it was warring African tribes that collected and sold their enemies as slaves to be shipped out, not the Europeans. 
Donald Trump claimed last night that Mexico is actually sending Mexican criminals to America just like Castro did when Castro emptied his jails.  Trump said the people who served in the Obama administration, including Hilary Clinton are stupid leaders and allow it.
            July 9 2015    The U.S. economy's stumble at the start of 2015 is dragging down the world's growth to the lowest level since the Great Recession, the International Monetary Fund said Thursday.  The number of permanently unemployed keeps increasing and the trade balance worsens.  Most of the US stock indices now show their 65 day moving average prices have peaked.  The cash flows for them peaked months ago.
Initial Unemployment Claims 07/04 297K up from last weeks 281K
Continuing Claims 06/27 2334K up from 2264K    
Trade Balance loss May -$41.9B up from -$40.7B last month 
            July 7 2015    Developing countries and emerging markets are taking big hits because the countries and corporations are not economically savvy.  Our analysis shows that the number of shares of stock sold on the Chinese exchange that are given with the long and short ETFs for Chinese stocks are phony numbers as of the end of April.  That means even the ETFs are ripping off investors using the phony fabricated communist investment information.  
            July 6 2015    Wall Street Ouija board market analysts the likes of Jim Cramer are calling for flat earnings to be the definition of corporate success for this quarter again.  By lowering expectations they expect that stupid greedy investors will continue to bid up prices.  This is just one more sign that the world stock markets are all overbought.  But unlike the financially ignorant commissars in China and Russia, Western Wall Street Ouija board market analysts cannot legally manipulate free markets.  Chinese and Russian stock markets are a disaster because communists are used to manipulating everything, and they don’t want let free enterprise run free.
            U.S. service firms grew at a slightly in June, as business activity and new orders increased.  The Institute for Supply Management said Monday that its services index edged up to 56 in June from 55.7 in May. Any reading over 50 indicates that services firms are expanding.  Many economists say the economy will expand slightly in the second quarter, after shrinking during the first three months of 2015.  Still, the index's hiring component slipped in June to 52.7 from 55.3 in May, which indicates that the rate of job growth might actually slow.
            Racism photographed by two men while two women with a man attack two other women with a child.  The man with the attacker hops around like an idiot.   No one including the two with cameras helps the woman who is attacked.  This is America under Obama.  What will it be like under Hilary? 
http://godfatherpolitics.com/23347/media-ignores-black-womans-vicious-attack-of-white-woman-with-toddler/#r9lqpmT1ZxMriL2d.99
            July 5 2015    The US FED has been printing money in anticipation of a breakdown of the world credit system and our US national debt more than doubled since 2006.   But the money supply has more than tripled!  Warren Buffet has begun moving his investments into a basket of foreign currencies.    The fear is there will be massive dumping of the dollar if a basket of currencies takes the place of the dollar as Warren Buffet thinks.  Even if the dollar made up 25% of the new trade currency it means foreign government banks would dump 75% of their dollars.   And if any US banks and brokerage firms were shut down the accounts are only insured to a maximum of $200,000 per account and some accounts are not insured at all.  We will lose anything over the $200,000 insured value.  Many accounts aren’t insured by the FED.   Price inflation will negate rising stocks as the world faces a crisis similar to Greece.  The average US citizen already carries far more national debt than the average Greek citizen.
 
            Factory orders in May fell 1% after falling 0.7% in April.  They are still declining year after year and at an all time low for the Obama years of decline.
 
            We were correct!   The Chinese Communist Party has admitted manipulating their stock market for several months causing a bubble with the hope of drawing in US and EU investors to apparently give foreign investors and Chinese speculators a hair cut and generate a huge profit for the Communist Party.  Pending IPOs in China are now suspended, brokerage firms pledged $19 billion for a market stabilization program and the People’s Daily told people to “have confidence and patience, instead of losing their minds” as the Chinese government looks to stop the worst three-week slide in stock markets in more than two decades. The Shanghai Composite Index has fell 29 percent since June 12 after surging more than 150 percent in a year.  The communists loved the recent bubble and thought they were now geniuses at manipulating capitalist markets.  But they didn’t think it was right that the bubble popped without Communist Party permission.   So they want the people to stop panicking and immediately start buying again so the government can liquidate some of the incredible debt they have run up building cities that have no people in them. 
            Texas wants its gold holdings held in Texas.  They are getting a little nervous about the invisible Obama recovery.
 
Losses will spiral if the Greek default causes a steep increase in borrowing costs for other debt-laden countries, such as Italy, Spain, and many nations other nations in South America, Asia, and Africa.  Interest rates could leap and even China could now be destabilized even as they already manipulating their Stock and financial markets.
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