April 4, 2016 The cyclic collapse of the US stock market is now imminent. An update is now relevant after another year of unprecedented manipulation of the economy by the US FED and many national banks.

            The world money supply has been increased so fast that it makes the US FED look cautious in comparison.  In spite of the $21+ Trillion Obama US debt expansion, the US economy is now faltering.   Worldwide there have been large-scale asset purchases (LSAPs), referred to as quantitative easing (QE).  Despite lowering bank discount rates close to zero additional measures were needed to achieve a pitifully small 2% growth target.   Negative interest rates will initially occur if we enter an economic depression. 

            The aim of the QE program was the injection of a large monetary stimulus into the major world economies to boost nominal expenditure and thereby increase domestic inflation sufficiently to prevent a great depression.  Since the major world economies did this virtually in unison there has not yet been a great disequilibrium or destruction of national currencies.  But the result has already been stagnation and tens of trillions of national debt that would bankrupt all the major world powers if interest rates were to only hit 5% again (even if no payments were made to reduce national debts).  5% Prime Interest Rate has been the US historic average prime interest rate.  The Prime Interest Bank Rate even hit 16% at the end of Jimmy Carter’s “stupid party” administration when terrorists invaded the American Embassy in Iran and held sixty Americans hostage for 444 days until President Regan was elected on his promise to kick the Ayatollah’s ass.

            America has been taken hostage again this time by the Obama administration and the corrupt stupid-party politicians.  Americans of all incomes have now unified to sweep all the corrupt and stupid politicians out of office regardless of their political party.  But it is too late to stop the impending recession.   It will likely be worse than we warned a few months ago because the FED has delayed the correction too long.  Now it looks as though we will be in a recession for most of the remainder to this year.  Originally we predicted the recession would bottom in April and recover by this summer.

            The decline in the stock market started late in 2015 and is now showing up in all the financial and economic indicators.  That means Obama and his corrupt “Stupid Socialist Party” will be thrown out this year in disgrace.

            U.S. home resales have fallen sharply in a potentially troubling sign for America's economy which had been thought immune to the global economic slowdown.

http://www.cnbc.com/existing-home-sales/

            Factory orders have been declining since the end of 2014.

http://www.martincapital.com/index.php?page=graph&view=factory_orders

            The Leading Economic Indicators have peaked at almost the same levels as before the first Obama recession.

http://www.martincapital.com/index.php?page=graph&view=LEI

            Construction spending seems to have peaked at a level below the Bush Administration peak.

http://www.martincapital.com/index.php?page=graph&view=construction

            The ISM Manufacturing index appears to be tanking.

http://www.martincapital.com/index.php?page=graph&view=ISM

            The fake under reported Obama caused unemployment rate stands at 5%.  The under reported real unemployment rate stands at about 10% but when the additional under employment caused by Obama’s crappy-care (30 hour part time exclusion for federal medical benefits), the real unemployment rate now approaches 20% for the first time since FDR’s Great Depression of 1933.

            The shrewd businessman, Donald Trump appears to know how to sort out the Obama/Clinton mess.   Trump knows that “Free Trade” is not the same thing as Mexico giving free land and tax breaks and loans for American companies to move manufacturing to Mexico.   Trump knows free trade is not the same as China unilaterally taxing American imports or refusing to import many American products that their people desire.   Donald Trump knows that Americans know that Obama is totally incompetent and Hillary is corrupt to the core.    Trump knows how to build an honest productive organization, a government of competent people, not prevaricating corrupt political hacks.  And Americans now are beginning to like Donald Trump’s ability to distinguish reality from the liberal news media and the Clinton-Obama bullshit.