The FED sees Japanese style disinflation as the greatest USA risk as core prices flat-line

The FED sees Japanese style disinflation as the greatest USA risk as core prices flat-line

Yet in many ways the stock market is reacting as though we were in the lost years of the 1970's when about two thirds of investors became disgusted and stopped trading securities. It is beginning to look like S&P 1000 may come before S&P 1250. Future earnings projections are looking too high. We could be in a lost decade again but it may be the decade of Obama socialism rather than Carter despair, stagflation, and the misery index. Obama and Carter have similarities. Both were initially thought to be bright but were disappointments. Both are socialists and both have been national one-term disasters. In fact perhaps Lyndon Johnson needs to be included because he was another one term national disaster.

The point we are making is that these presidents were incoherent and from the dark side, that of government micro-economic meddling called socialism. Lyndon ran up a guns and butter disastrous Vietnam War debt fought by drug users and frauds like Senator Kerry who wrote his disgusting book about his hallucinated American psycho-crimes. You may still be able to find it on the web. His opponents published free on the web because he would definitely have been far worse than even Obama perhaps even our first psycho-president. Read his book if you doubt it, especially what Kerry says they did to captured N. Vietnamese nurses.

Given the fact that the dark side is in power for at least two more years it will not be possible to unravel the socialist legislation in time to stop Obama fast enough to turn the economy around. That is why we have said the market would be volatile and have been taking profits. Dis-inflation will not drive gold prices higher. The socialists have been building a lost generation of lazy Americans and immigrants to lazy to enter legally and too lazy to learn English. Now if you don't think that is just lazy what do you think is the reason they don't learn English? Do you think they are just intellectually challenged? English is the business language of the entire world including Spain. It is pure socialist laziness on the part of ungrateful immigrants who fly the American flag upside down beneath the Mexican flag. Mexicans flock across the border to visit America legally and to have their babies born in American hospitals. Obama says that is how he is an American citizen although no one has yet to show a copy of Obama's original birth certificate. The one on the web may be official but it is not signed and dated by a witness, as are original American birth certificates.

The leftists say that American Free Enterprise recently failed after over 200 years of success and we are in a pickle and need to reconsider the hammer and the sickle. How stupid can Obama be? Recessions are not over until unemployment returns to a normal level. The recession is not over unless they want to say we have entered the Obama depression and the current unemployment level is the new normal 10% Obama level. If it was over last year then the current economy is Obama's fault at long last, isn't it. He can't blame Bush any more! We have had 15 economic panics and 5 depressions all of which we handled. But stupid Obama leftists are out saying that without Obama's socialism, this last one would have been fatal for the economy. It just illustrates their ignorance and stupidity as they trample on our freedoms and the Constitution.

World Markets:
China is unique and seems to be making a real attempt to free the intelligence, skill, and work ethic of its productive people… and it makes for 8% growth for the entire nation. They are entertaining wealthy American investors this week.

Economic Calendar

This week
Sep 28 9:00 AM Case-Shiller 20-city Index Jul
Sep 28 10:00 AM Consumer Confidence Sep

Sep 29 10:30 AM Crude Inventories 09/25

Sep 30 8:30 AM GDP - Third Estimate Q2
Sep 30 8:30 AM GDP - Deflator Q2
Sep 30 8:30 AM Initial Claims 09/25
Sep 30 8:30 AM Continuing Claims 09/18
Sep 30 9:45 AM Chicago PMI Sep

Oct 1 8:30 AM Personal Income Aug
Oct 1 8:30 AM Personal Spending Aug
Oct 1 8:30 AM PCE Prices - Core Aug
Oct 1 9:55 AM U Michigan Consumer Sentiment - Final Sep
Oct 1 10:00 AM Construction Spending Aug
Oct 1 10:00 AM ISM Index Sep
Oct 1 2:00 PM Auto Sales Sep
Oct 1 2:00 PM Truck Sales Sep


Market Outlook Sept 28, 2010
There is decided pessimism returning to the free markets as it is apparent that throwing out the congressional socialists may not ever allow Obama's socialism to be reversed because it was ram through with a plurality that probably will never be granted by the electorate again.

Also, EU sovereign debt issues are growing again and California is closer to bankruptcy now.

Deflation remains the world's greatest threat. So the FED is trying to raise inflation expectations to unleash the cash being held back due to Obama's incoherent tax policies. Stupid socialist-democrats parrot Obama's claim that he will give a tax cut when in fact he is just not having the Bush tax cut expire. Obama's speeches sound very much like "Big Brother" in George Orwell's book entitled "1984". Greenspan has advised that the tax cuts be allowed to expire.

Profit taking is advisable especially in commodities like silver that do not realistically have any probability of increased demand as gold has with possible European currency devaluation's. In fact copper production is rising and with it is the rise in supply of silver which is a by-product. Other commodities such as grains can be expected to be volatile because the supply and demand regions are far apart this year.

World Markets
Asian markets were down last night. Shanghai was down -0.6%, Hong Kong down -1%, India down -0.1%, and Japan down -1.1%.

European markets are flat this morning in a range of about -0.2% to +0.3% about half way through their day as American futures just begin to rise.

US pre-market futures were up slightly like yesterday. Up 0.2% to 0.4% at 8:30 AM.