Obama knew his stimulus package would feed the drug war insurgency in Mexico.

Obama knew his stimulus package would feed the drug war insurgency in Mexico.

Do you remember when Obama socialists said tax cuts only help the rich? Well as a result we are losing jobs right now at a net $20million jobs per year and now he agrees tax cut are a good idea and he is going to have tax cuts which he claims don't help the rich but help small businesses.

Do you remember though that he said anyone making more than $250,000 per year will not get a tax break? Well Obama is too stupid to think before he speaks and is about to discover that the small businessmen are the ones making $250,000 to $500,000 a year because they are most of the Subchapter-S tax filers who are so small they file their business income on their personal tax form so their personal income is a lot higher but they avoid the double taxation Obama would force them to pay if they were taxed first with a corporation tax and again with their personal income tax. You see Obama is too ignorant to know how his tax policy either double taxes small businessmen or forces them to report all corporate income on their personal tax forms. Therefore the 0bama limit of $250,000 inhibits all the small businessmen who would be hiring now because they could end up with a cash flow problem and bankruptcy.

Do you remember when Obama socialists said that Bush's strong Mexican border control was a waste of time because American demand for drugs was what was making the drug lords rich and we should drop our border defense. Well now Obama and Hillary misjudgments have made the drug lords so powerful that yesterday they said that we have created a left wing Bolivian type insurgency in Mexico. Remember how they said by giving the $trillions to their political constituency of a leftist coalition of socialist-state/federal racist employees-pervert-union-lazy-welfare-drug addict-indigent-illegals would get the cash into the economy the fastest? Well Obama obviously passed all the American taxpayers money to the drug cartels which are flourishing under Obama border policies.

Letting productive people keep some of their money to invest and create new jobs was something 0bama and Pelosi ridiculed when they took office. Those socialist idiots thought the fastest way to get the economy going was to give money to people on welfare, drug-addicts and people of the same race as 0bama. But the recipients of welfare don't have to take drug tests to get welfare. Working people in private industry do have to be drug-free. What happened is that the Mexican drug lords have gotten the full benefit of 0bama flushing over $1trillion down that toilet bowl. 0bama's political constituency of 1960's hippies and leftist cocaine addicted radicals are the biggest boon to the drug cartels. The Obama leftists are changing state laws and you can fry your brain on marijuana in any town in California today. Stoned California, Pelosi-land now has the country's third highest unemployment rate.


World Markets:
The WSJ this morning said Japan just woke up to what we have been saying for a year. When China buys Japan's currency, China destroys Japan's competitiveness by making Japanese products more expensive. Furthermore it also is like giving Japan crack-cocaine. The crack-cash infusions from china allow Japan to spend recklessly to weaken their currency. The 0bama administration is already addicted to China's crack-cash infusions and it is destroying American competitiveness by keeping American product prices high and unemployment high. The 0bama administration economic advisors are too stupid to know this and they are acting like their addicted/stupid constituents who don't have two nickels to rub together because they chose to live beyond their means and usually chose recreational drugs as well. Any political organization that promotes legalization of drugs is brain-dead and obviously ignorant of the fact that drugs were legal throughout the world for centuries and in America until 1914. They turn strong healthy brilliant people into sniveling cockroaches just like Buckley was when he became an advocate for cocaine legalization.

Americans and Chinese have an amicable relationship on a people to people level. We have never attacked each other… in fact America helped China defeat the Japanese and China helped many American soldiers who had to parachute into china during WWII to avoid capture by the Japanese. Many American and Chinese schools now have student exchange programs. Unfortunately drugs and China's crack-cash infusions are now becoming the world's greatest economic threats. If China uses them and then wages war, China and much of the world will cease to exist. The Chinese people seem wise enough to realize that secret intelligent technology already exists far beyond their imagination. War is no longer an option and China stands the most to loose if the world defaults or inflation wipes out all their investments in sovereign treasuries. China needs to think through the destabilizing effects of loaning money to anyone… even their own children. Giving money this way especially to a dangerously ignorant leftist 0bama government could allow Obama to destabilize the world. Today, members of Obama's race still get no-money down government guaranteed mortgages even though the majority still default and such racist Obama policies are identical to the ones Rangle and Dodd had when they destroyed the world banking system in 2007-2008. We don't even know for sure that Obama is an American. He cannot produce a copy of an original birth certificate and is afraid to have his college records released because he was a foreign student.

The world does not yet have to have an "0bama Depression." 0bama is starting to introduce some McCain campaign ideas that will help but not go far enough. We just have to reverse 0bamacare and other policies so that businesses are not afraid to hire and get locked into some new communist entitlement to the lazy laid-back leftists. We must repeal Obamacare ASAP. US manufacturing continues to increase adding to a rebound in China manufacturing. China is now growing at a more sustainable rate. In addition, stronger-than-expected economic growth in Australia helped fuel optimism about the global economy. The world markets continue to follow the US markets. All we need to do is get our free enterprise system freed up from 0bama's hammer and sickle programs.

Economic Calendar
We are seeing manipulated leftist 0bama government statistics again with wide data scatter and swings in corrections as big as the reported changes themselves. Unemployment figures are now fudged lower because elections are coming up. Then the 0bama communists will let them rise quickly after the socialists are thrown out so the leftists can say that American Free Enterprise just failed after over 200 years of success and we are in a pickle and need to reconsider the hammer and the sickle.

Leftists are historically corrupt and manufacture useless statistics primarily for propaganda. They don't understand economics or understand that when they fudge the number higher one month it tends to make the next month lower because it is hard to lie continuously about something like total unemployment or retail sales.

Crude Inventories 09/04 dropped 2.8M barrels which means oil prices and the economy may be picking up again. That is good news. Gasoline supplies rose putting downward pressure on gasoline prices.
Fed's Beige Book Sep was somewhat optimistic but more important, 0bama is finally going to try to help business hire some Americans. He is going to use Mc Cain's idea to let business write off new investments and he will continue Bush's tax cut for families with less than $250K income. On the down side he should have let business write off spending on marketing and other services too as McCain suggested to employ a lot more people in services. Also clueless 0bama does not understand that most small employers are subchapter "S" and therefore their corporate income is taxed on their personal income tax form. That means that unlike Bush, stupid 0bama will be taxing the small businesses at a higher rate because they are a business being taxed like an individual and that is way too high. Instead he should make individual taxes lower based on how many employees the individual has; i.e. a 250k limit for one employee, 300K limit for two etc. Accepting Tea Party type business advice is good news coming from a socialist moslem like 0bama who will not go near the 600 foot deep 9-11 hole in NYC.

Mayor Bloomberg is a left leaning Republican disgrace for not having new towers built on the 9-11 site that would dwarf any nearby mosques. Leftists in NYC have delayed the rebuilding for eight years. The disgrace is not the building of a mosque near the 9-11 site but of Bloomberg leaving a 600 feet deep hole as the NYC answer to terrorism instead of a triumphant expression.

Consumer Credit in July declined 3.4B after declining about 1.3B last month. It shows that the American savings rate is still high and consumers are cutting up the charge cards of abusive banks that charge more than 20% interest.
Initial Claims 09/04 declined to 451K from 478k still increasing unemployment at a rate of over 20 million people per year.
Continuing Claims 08/28 at 4478K down slightly from 4480K last time
Trade Balance July was -42.8 improved from the -49.8 last month

Today
Sep 10 10:00 AM Wholesale Inventories Jul


Market Outlook Sept 10, 2010
An upside breakout would require a surge of the NYSE above 71270. We are now at 70344.

Yesterday was again low volume but again at least an advance. The hedge funds are starting to realize they killed investor enthusiasm with their greedy high speed trading that manipulated stock prices. They lied and told investors those stop-loss orders would protect them. But the flash crash of May 6 completely wiped out many small investors especially any with stop loss orders within margin accounts. The hedge fund manipulators are under investigation now. The funds now almost completely control the market because individual investors have been frightened to the sidelines. Volatility will be large. Market manipulation with these low volumes is easy. Options traders are siphoning off more money than ever and seem to have the leverage to manipulate stocks over the short term, which is all that is, needed to drive investors out of the stock market completely.

It is time to get ready to take profits. The socialist community organizers are planning an exceptionally dirty campaign this fall. All those who believe in America's free enterprise system which survived since 1776 will be given the Sarah Palin treatment by the 0bama communists who say, "The economy is in a pickle, time to reconsider the hammer and the sickle."

Even when they are thrown out of office the lame duck leftists will still be able to pass an extreme leftist agenda and leave a legal morass for the new inexperienced Congress to unravel. The market will be very volatile until the end of January and investors should have good opportunities to get out and back in over the next four months.

We would have been out of the recession before now if corporations were hiring and they would be hiring if tax and spend socialism had not been introduced by Community-organizer-in-chief, 0bama. The 0bama deficit is already almost three times what eight years of fending off Moslem terrorists has cost us in Iraq and Afghanistan. And if 0bama lets Iran build the A-bomb and nuke America that probably will cause World War III and end the 0bama depression just like WWII ended Franklin D. Roosevelt's depression.

0bama's leftist government needs to be thrown out in November for the rally to be big. If the socialists maintain even a slight majority it will be impossible to reverse the arrogant unconstitutional redistribution of wealth and 0bamacare because the socialists will claim they have a mandate to continue to destroy American free enterprise and liberty. The dirty propaganda the Nazi used to take control could pale in comparison to what the socialist-democrats have in store this October. FDR created the Great Depression out of the Wall Street panic of 1929. President Reagan had a Wall Street panic in October of 1987 and it was Greenspan's first test. Unfortunately 0bama and Bernanke can't measure up to Reagan and Greenspan.

World Markets
Asian markets were up following the USA again last night. Shanghai up 0.3%, Hong Kong up 0.4%, India closed, and Japan up 1.6%.

European markets are flat following American futures again this morning in a range of about 0% to 0.3% about half way through their day.

US pre-market futures are up slightly in the range 0.2% to 0.3% this morning at 8:30 AM.

The only thing we have to fear is fear itself, which now consists of 0bama, Gore, Bogoyevitch, Barney, Rangel, Waters and the other corrupt leftist democrat-socialists who are destroying America.