August 14, 2015 Trump today said what this blog has been saying for years. The current Presidential administration is filled with stupid and corrupt incompetent people, mostly socialists. Bravo! He also said the same about most of the Republicans and Socialists in Congress. Philip Bump says Trump is not a modern candidate but is actually similar to Ronald Reagan. Bump meant that remark to be derogatory but most Americans want a President like Ronald Regan again. Regan was originally a Democrat who believed free-enterprise is better than socialism so he switched to Republican.

Candidate Dr. Ben Carson said Margret Sanger is the racist who created Planned Parenthood to reduce the population of African Americans who are aborted at a rate three times higher than Whites.  Abortion was opposed until research studies proved that abortions primarily reduce the black population by 3 black to 1 white child.  Only then did it become legal in Texas and many Bible belt states that previously were pro-life.   The courts have now decided it is discrimination to refuse to bake a wedding cake on the basis of the Constitutional right to religious freedom but it is ok to kill the unborn that is 3 to 1 discrimination against a minority.

            Ever notice on TV that when Hilary speaks all the officials behind her are bored out of their minds or falling asleep?

            Industrial Production in July increased 0.4% from the rate in June.  But sales must not have increased because Business Inventories rose 0.8%.

            Both import and export prices declined in July indicating deflationary pressure as the economy slowly falls into a deflationary spiral that could become an Obama depression.

            August 13, 2015   Americans are tired of the “Stupid Party’s” incompetence and corruption and that is why Donald Trump is becoming more popular.  Once they see Donald Trump’s wife, Melania Trump, talk they will realize that Trump’s wife is more intelligent than Hilary Clinton and Elizabeth Warren combined.  But that does not mean Donald Trump will win.  A great leader will naturally draw the support of a highly competent team of advisors.  Eisenhower and Regan attracted and selected highly competent teams.  Donald Trump has yet to start putting together a team for governing America.  Obama has a team of about two dozen idiots he likes to call his Tsars (named after the Russian tyrants).   New leadership is needed to put America and the world back on a path of growth.   Sore loser Senator Lindsey Graham is an example of several professional do nothing Republicans who need to be replaced as well.

            The recent market moves seem to be conditioning investors to let their guard down because each -2% daily decline has been fully recovered in the afternoon so novice investors are conditioned to buy in.  When the manipulators execute a -4% or a -6% plunge all the novices will be sucked in by -2% and then show immediate large losses.  That will likely trigger a panic sell-off and a potential decline steeper than last October. 

            Four of the five indices we follow have given sell signals.   Only the NASDAQ has not shown a topping out of cash flow into that market although that sell signal seems to be forming. 

            The MBA Mortgage Index as of August 8 fell to 0.1% from 4.7% 

            Job Openings as of Jun fell to 5.249 from 5.363M

            The Treasury Budget deficit for July grew 50% to -$149.2B from -$94.6B 

 

            August 12, 2015   Many of China’s corporations are headed for bankruptcy and default.  While government debt is growing, so is corruption.  China is no longer a generator of growth; it is struggling now just to generate any growth. The decision to devalue their currency again over night provides many signals about what ails China.  China and other emerging economies now are struggling to generate any growth at all.  China's decision leaves the America as the only systemically important country willing to accept the strengthening of its currency.  China appears to have abandoned any attempt to be a world economic leader a step in the country’s multiyear journey toward a more efficient and responsive market-determined system.  In the short term, however, it will amplify the challenges to all global growth, and add retaliation and volatility to markets that have lost some of their fundamental anchoring.  Other countries have a choice: devalue, put tariffs on Chinese products, join China in printing more money, or have more imports and fewer exports.   That is Quantitative easing.  This is intense inflationary pressure and tariffs could lead to general depression.  That means it is time to say that Gold will probably begin to form a bottom if other nations join China with devaluations.

            If China bails out losing corporations and continues to manipulate their stock market, Americans and Europeans will withdraw from investing in China.   China will lose its growth in leadership just as Japan did in 1990 when Japan became addicted to Quantitative easing.  Japan has never recovered.   India will then replace China as the fastest growing third world country.

            America is on the same path of mediocrity and corruption that has brought down many leading nations in the past.   We have brain dead socialists running the “Stupid Party” and most universities.   Socialism is destroying America with corruption and layers of bureaucracy designed to facilitate kickbacks and government funding.  We see this administration attacking banks over and over, every time political kickbacks are wanted.  Corruption is what one gets with the incompetence of socialists.  The best American students cannot get A’s from the brain dead socialist professors unless they pretend to be socialist leaning.  The mediocre socialists like Elizabeth Warren get into the best Universities (lying and claiming she was a native Cherokee) and have their poor grades and their lies on their admission papers suppressed (as Obama did) with court orders.

            The American markets have further to fall now.

            August 11, 2015   China's central bank devalued the Yuan 1.9 % Tuesday and switched to a more market-determined benchmark for the currency's daily trading band.  A weaker Yuan makes Chinese exports cheaper and competing exports more expensive.  It is likely to cause other countries to follow suit and make American products look more expensive and cause the Obama economy to decline faster.  Could we be in for a full scale currency war?  We are still moving towards an Obama economic depression.  Only a new hope of economic and business competence and leadership can stop the decline in America.  And as America goes the world goes.   Donald Trump’s popularity grows because Americans know he tells the truth about the stupidity and racism of the current administration.          

            Obama’s second quarter Productivity and Unit Labor Costs showed absolutely absurd improvement swings of 4.4% and 6.2% respectively from the last first quarter release proving the administration remains grossly incompetent when it comes to anything arithmetic much less economic.  The stupid party incompetence has made the Republican Party presidential debates the most popularly viewed programs in political history.  

            The democrat socialist candidate, Bernie Sanders, was shouted down this week by black supporters of Hilary Clinton.  Bernie gets crowds ten times larger than Hilary Clinton’s but he believes all lives are important and Hillary supporters told him he was a racist because only black lives are allowed to be called important.

http://www.washingtonpost.com/politics/how-does-bernie-sanders-draw-huge-crowds-to-see-him/2015/08/11/4ae018f8-3fde-11e5-8d45-d815146f81fa_story.html

http://www.latimes.com/nation/la-na-sanders-california-20150811-story.html#page=1

http://thehill.com/blogs/blog-briefing-room/news/250667-protesters-interrupt-bernie-sanders-rally

            Donald Trump’s popularity grows because Americans know he tells the truth about the stupidity and racism of the current administration.

            When asked what the difference was between Democrats and Socialists the chairman of the Democrat Party could not come up with anything. 

http://townhall.com/tipsheet/danieldavis/2015/08/01/tonguetied-debbie-wassermanschultz-cant-tell-the-difference-between-democrats-and-socialists-n2033183

            China and Russia have socialist central planning run economies.  America has had free-enterprise since 1776 and gun laws to have a second revolution whenever required.  We have more armed American citizens than the Chinese or Russians have armed soldiers.  Obama-Holder armed American criminals and lunatics with the “Fast and Furious” guns that have worked their way back with the drugs from Mexico.  That is why gun violence has tripled since the Stupid Party took over the American government.

http://www.americanthinker.com/articles/2013/01/too_fast_too_furious.html

 

August 10, 2015   On incredibly few shares traded most American stocks gapped up over 1% at the opening and then sat there doing nothing all morning.  Today, virtually ¾ of investors are on summer vacation.  In France more than 90% of the population is on vacation all of August.  Airbus industry virtually shuts down for the month.  The low volume makes this month very dangerous because very little negative volume can easily trigger short covering followed by automatic panic limit selling.  A large selling volume could easily cause US and European stocks to plunge.

Consumer debt rose a dangerous 25% last month.