China has hit a major slowdown but China’s economic numbers are being manipulated in hopes that they can improve their balance sheets. China’s economic manipulation was uncovered in research by Australia & New Zealand Banking Group. “Benford’s Law,” holds that in any series of numbers, certain patterns will be found only if the statistics are naturally generated, not manipulated. China yesterday said exports rose indicating improvement in the world’s second-biggest economy. But even that does not make sense since bulk trade is near an all time low so it looks like China is jaw boning and that could be a serious sign of a meltdown. Slowdowns are most likely in emerging markets with high old-age dependency ratios, strong investment rates and undervalued currencies that lower their industry incentives to move up the technology ladder. The study released said those are the patterns of current conditions and recent policies in China. “Middle-income countries may find themselves slowing down at lower income levels than implied by our earlier estimates,” said Eichengreen, Kwanho Shin of Korea University and Donghyun Park of the Asian Development Bank. See:

http://www.bloomberg.com/news/2013-01-10/china-data-suspected-says-75-year-old-theory-cutting-research.html

 Winston Churchill said,  “Some people (International socialists) regard private enterprise as a predatory tiger to be shot. Others (nationalist socialists) look on it as a cow they can milk. Not enough people (free enterprise) see it as a healthy horse, pulling a sturdy wagon.  The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.  It has been said that democracy is the worst form of government except all the others that have been tried.  Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.  Victory at all costs, victory in spite of all terror, victory however long and hard the road may be; for without victory, there is no survival. You can always count on Americans to do the right thing - after they've tried everything else.”

Headline: Crime escalates in Australia as the government disarms the citizens. 

https://www.youtube.com/watch_popup?v=fGaDAThOHhA 

Here are some more “Brainey Quotes”

The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. America has a debt problem and a failure of leadership. Americans deserve better. I, therefore, intend to oppose the effort to increase America's debt.  ~ Barack Obama in a Senate speech

I hereby accuse the North American empire of being the biggest menace to our planet. ~Hugo Chavez

How can we help Obama?  ~Fidel Castro

http://www.brainyquote.com/quotes/authors/f/fidel_castro.html 

Criticism may not be agreeable, but it is necessary. It fulfils the same function as pain in the human body. It calls attention to an unhealthy state of things. The price of greatness is responsibility.  Continuous effort - not strength or intelligence - is the key to unlocking our potential. You have enemies? Good. That means you've stood up for something, sometime in your life.  There is no such thing as a good tax.  ~Winston Churchill 

Bloomberg reported that new infections among drug users in Greece have exploded 35-fold in two years, adding pressure on a strained medical system faced with shrinking resources due to the financial crisis. A socialist government hiring freeze and spending cuts aimed at curbing the nation’s spiraling debt threaten to extend the wait for expensive legal addictive opiate drugs that drug addicts get free in socialist Greece so that they can quit addictive illegal drugs.  Isn’t socialism wonderfully stupid?

“Free World” American bankers agree that the socialist “Liar Loans” would never have been made by the private “Free World” banking sector because they could not qualify for private bank mortgage guarantees.  Fannie M and Freddie M were created by the socialist liberals because they thought everyone in America should be able to have their own house.   That took American socialism to a new level of stupidity.  We have gone from American socialists wanting everyone having steak and potatoes and a warm place to sleep to everyone getting a Fannie or Freddie home.  But instead of that, most of the Fannie and Freddie liar loans went for houses that the people they tried to help have since abandoned.  Most were vandalized, stripped of copper wire and copper plumbing and in Detroit they have been set on fire and burned to the ground so criminals can collect the insurance.  But Obama and Holder are still suing private “Free World” banks to force them to make more liar loans for Fannie and Freddie to guarantee. 

Squawk Box on Wednesday showed the Obama fiscal policy scenarios. Tey all predict unemployment will not get below 6.8% for between 6 and 18 years even with the best (least is best) of Obama policies.  It predicted the more redistribution Obama achieves the greater unemployment and poverty will grow.  In Eastern Europe the people pretended they were doing things like good socialists love to pretend to do.  Finally by 1989  the people in East Germany and the USSR were starving and the iron curtain was torn down so the food from the charitable Free World could enter and the slaves of socialism could escape. 

World Economies

http://www.bloomberg.com/news/

http://www.foxbusiness.com/index.html

With orders for new ships plunging to an eight-year low in 2012, China Rongsheng Heavy Industries Group Holdings and its local rivals are foraying into the offshore business, lured by a market that will reach about $328 billion in 2017. The new entrants are lowering prices to grab contracts, hurting margins at Singapore-based Keppel Corp. and Sembcorp Marine Ltd., the world’s two-biggest rig makers.  “It’s like moving from one bottomless pit to another,” said Park Moo Hyun, an analyst at E*Trade Securities Co. in Seoul. “Chinese shipyards are competitively trying to get into what they see as a lucrative business. But the consequence of that is they could end up distorting the whole market.”  China’s inflation accelerated to a seven-month high and may limit room for easing to support an economic recovery.   

Japan may finally be bottoming from their Quantitative Easing (QE) started in 1985 which collapsed their market from 1990 until 2012.  It looks like the bottom has held for two years now.  When Bernanke stops his QE it is possible the US stocks will also decline for 20 years and USA debt will exceed 100% of the GDP as it still does in Japan.  That is what QE did to Japan.

http://in.finance.yahoo.com/q/bc?s=%5EN225&t=my&l=on&z=l&q=l&c= 

German stocks in 2013 are now at the same highs as when the German markets collapsed of 2000 and 2007.  See:

http://in.finance.yahoo.com/echarts?s=%5EGDAXI#symbol=^gdaxi;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 The British market indicates peaking in 2000 and stagnation since 2007.

http://in.finance.yahoo.com/q/bc?s=%5EFTSE&t=my

The Swiss market indicates stagnation since 2007.

http://in.finance.yahoo.com/q/bc?s=%5ESSMI&t=my 

The French market indicates stagnation since 2000.

http://in.finance.yahoo.com/q/bc?s=%5EFCHI&t=my

American Economy

The stock market has been disengaged from the economy for some time and is becoming increasingly unstable because the FED has created a bloated balance sheet.  Coining a $1Trillion coin with Obama's face on it and giving it to the central bank as collateral to underwrite $1Trillion in US debt is essentially the equivalent of Bernanke’s Quantitative Easing.  It is a number on the balance sheet that we claim has value to borrow against.  It is our Emperor with no clothes.

The DJA is 2013 is also now at the highs before the market collapses of 2000 and 2007.

http://finance.yahoo.com/q/ta?s=%5EDJA+Basic+Tech.+market Analysis&t=my 

http://biz.yahoo.com/c/e.html

This week

Jan 8

Consumer Credit Nov $16.0B got worse from $14.2B

Jan 9

MBA Mortgage Index 01/05 11.7% got better from -10.4%

Crude Inventories 01/05 1.314M got better from -11.1M -

Jan 10

Initial Claims 01/05 371K got worse from 367K

Continuing Claims 12/29 3109K got suspiciously better from  3245K

Wholesale Inventories Nov 0.6% 0. got worse from 0.3%

AM Natural Gas Inventories 01/05 -189 bcf got worse from -135BCF

Jan 11

Trade Balance Nov -$48.7B got worse from -$42.2B

AM Export Prices ex-ag. Dec -0.2% got better from -0.7% but at a declining rate
Import Prices ex-oil Dec -0.1% got worse from -0.2% but 0.3% less worse than last months net

Markets  January 11, 2012

The stock market has been disengaged from the economy for some time and is becoming increasingly unstable because the FED has created a bloated balance sheet.  Coining a $1Trillion coin with Obama's face on it and giving it to the central bank as collateral to underwrite $1Trillion in US debt is essentially only the equivalent of Bernanke’s Quantitative Easing.  Bernanke currently is merely putting up uncollectable mortgages the USA has from Fannie and Freddie as collateral for buying US treasuries which is just another form of collateral they can use.  That is why the stock markets are at old highs and could collapse at any moment.  The stock markets are awash with cash available from borrowing on uncollectable collateral worth about as much as a single $20Trillion Zimbabwe postage stamp.  That would be a very rare stamp and QE is all about psychological games the seller plays on the buyer.

The DJ Rails are within 1% of confirming a DOW buy signal. The DJI and DJR confirmed a sell signal together in August 2011and the DJR was recently rising faster than the DOW.  The two are now converging toward a confirmation of a DOW buy signal possibly by mid year.

http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=3m;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

The Dow Theory Industrials and Rails sell signal of August 2, 2011 still holds. The Rails beat the last 3-month shoulder. http://finance.yahoo.com/echarts?s=%5EDJT+Interactive#symbol=^djt;range=1y;compare=^dji;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined;

The USA VIX collapsed again.  It seldom has stayed low this long.  A low VIX normally precedes a sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end.  Volume indicated churning in December most probably profit taking before tax rates rise.

http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c= 

Is the Baltic Dry Index is near a new low.  China probably hit bottom.   They may block this info now

http://www.bloomberg.com/quote/BDIY:IND/chart

If that did not work, insert the following…

http://www.bloomberg.com/quote/BDIY:IND

 and then click on

/quote/BDIY:IND/chart

Then select 5 years and you get close to the same chart they had before.

World stock market updates:

http://in.finance.yahoo.com/intlindices?e=asia

http://in.finance.yahoo.com/intlindices?e=europe