At some point in time we will once again have intelligent leadership in the USA and will use our natural gas that is much cleaner and 70% cheaper, our gasoline that is 50% cheaper and our oil that is 30% cheaper to produce.... more energy than what the rest of the world supplies today. Even USA coal is cheaper to produce and ship than for China to mine. With energy independence we can withdraw our forces from the mid-east and Africa and no longer have to deal with and defend the criminally insane religious/socialist tyrants that sprout in those regions like weeds. We can stay out of squabbles and cease to be a lightening rod for terrorism. And then the USA will be more prosperous while most of the rest of the world will continue to live with socialist feudalism as they love to do anyway. And some of the world will continue to pray six times each day for the last bit of human freedom and human dignity in the western world to collapse. Currently China, N. Korea, Iran, Pakistan, and India are growing thermonuclear threats to the very existence of the human race. Yet no one in any leadership position is even thinking…

Bernanke QE3 is funding an equities bubble that allows mergers that increase layoffs and unemployment that normally only occur during full employment to now occur in a world-wide depression.  Companies use his low interest funds to close businesses, automate, and layoff the surplus workers.   This is only happening because QE3 is causing an artificial stock market bubble in the midst of Obama's depression.  Then when Bernanke shuts off QE3 and interest rates rise… the bubble will pop and many over-leveraged businesses will go broke and highly leveraged hedge funds will blow-up.  It will break the "Buck" and even money market funds could collapse. However a few like Warren Buffet and other wealthy Americans are using Bernanke’s low interest money for highly leveraged buyouts of healthy companies to take ownership control and extract all the value and ultimately leave the company bankrupt when Bernanke allows interest rates to rise.  The Bernanke exit problem is two edged.  One edge is the inevitable bankruptcies that will occur when interest rates on corporate debt rise.  The other edge is the unemployment the mergers and acquisitions and high debt cause as QE3 continues at the depths of a depression when mergers should only occur when there is full employment and lots of jobs.

Basically QE3 is just what Obama says it is.  It is an economic stimulant.  Like Cocaine and other stimulants it is addictive and causes brain damage to the users.  It is a wonderful euphoric sophomoric experiment, but once the foolish student is hooked it is almost impossible to stop.  Trying to stop the Dodd/Frank/Obama “Liar Loan Mortgage” recession with Obama’s stimulants and regulations has given the world a depression which ultimately could lead to the economic death (bankruptcy) of the free world.  So there you have it, stopping a stimulation addiction cold is painful.  The USA should have bit the bullet four years ago and we would be in an energy boom economy by now.  Now the world is in pain and having the shakes and craves more of the addictive poison called QE.

San Francisco Federal Reserve Bank President John Williams said Thursday that the U.S. central bank will not end its bond-buying program in 2013 until a 6.5% unemployment level is achieved and that itself would not be imperative until inflation were projected to reach 2.5%.  But that could be any time now because look at this weeks reported Consumer Price Index and see it already hit a 3.6% annual inflation rate this week.

Under feudalism, the State (is embodied in a protector, a War Lord) who owns everything, redistributes according to what the people require to subsist, and takes what they produce via force.

 Under socialism the State (is embodied in a political party) owns everything and redistributes according to what the people require to subsist, and takes what they produce via force.

Under America’s original pure Free Enterprise, the State maintains the peace as a lawful arbiter for counter acting the use of force by arresting and trying those citizens who use force. People have private property and other personal property. People earn according to the value they create or rely on charitable organizations when unable to earn a living. Value, wages, and salary are determined by consensual agreements rather than force or government decree. The Federal Government is only permitted to have a military force to defend America from foreign attack. The Constitution did not permit the Federal Government to have a Federal Domestic Army that would make America into a police state. The Constitution gives the states the right to have police.

Entrepreneurs are business persons who risk their fortune and health to start a new enterprise.  Capitalism is a particular economic system for banking and financing corporations.  Communist China even uses a variant of capitalism to finance much of its industrialization and even experimentally encourages entrepreneurs by allowing them to accumulate private property and wealth. 

Creative destruction is a particular form of product development methodology what advances technology so fast as to render earlier products and competition obsolete until the creative designers and engineers begin to run out of new ideas.    It can last one or two decades until it loses its critical entrepreneur who designed and ran the process.  IBM, Microsoft, and Apple dominated computer hardware, software, and then integrated products respectively for up to about 20 years. 

Feudalism and socialism are the two systems primarily associated with genocide and wars.  Feudalism sometimes merges with socialism with local warrior leaders and more global religious leaders.  Feudal socialism was originally characterized by walled towns and cities for protection from the vicious and idle marauders.  Everyone contributed food and resources and the leaders redistributed the wealth.  Tithing by the church and taxes by the warrior lords covered the costs of government, defense, and education. 

Practically every outlawed religious commune or pacifist group in Europe sought refuge in America.  The Pilgrims’ socialism was abandoned after two years during which 50% of their Massachusetts Plymouth colony died of starvation in America’s land of plenty.   The pilgrims then switched to individual free enterprise where if they grew more, they could trade their surplus for something else of value. 

On Tuesday Feb 19 at the very peak of the stock market rally MSNBC/Pravda’s Jim Crammer ranted about how misguided investors were who just sold out of the market.  How pathetic his stay-invested advice was.  He is Mr. Pollyanna, or better yet the goat they use to lead the herd of investors to their slaughter.  The opposite is true of gold and gold stocks.  The gold death cross occurs near every bottom in the gold market but all the goat pundits were telling people to sell gold right at the bottom when it was time to buy.

http://futures.tradingcharts.com/chart/DG/W?anticache=1361395109

Bernanke, the naked economic emperor, has a room full of tailors who want to start cutting QE3.  The U.S. Federal Reserve now recognizes that QE3 can neither bring down nor slow unemployment because it is only increasing unemployment via mergers and acquisitions that drive up stock evaluations but cause further consolidation layoffs when the companies merge.  Businesses also see Obama spending making layoffs necessary to lower the rapidly rising labor costs especially cost of medical care.  That increases the burden of the Obama give-away programs in a vicious cycle as socialism spreads unemployment and poverty to everyone.   The FED minutes indicate they will stop buying assets without any hope of ever seeing any pickup in hiring.

 Monday industrial metals began a decline in anticipation of a deepening global economic slowdown while ignoring the rising inflation pressure from loose credit.  “The whole thing is doomed,” Co-chief executive officer, Lars Christensen, of Danish bank Saxo said this week in an interview at the bank’s Dubai office. “Right now we’re in one of those fake solutions where people think that the problem is contained or being addressed, which it isn’t at all.” the euro’s recent rally is illusory and the shared currency is set to fail because the continent hasn’t supported it with a fiscal union.”   “Another possible fallout is getting rid of some of the countries that are being ruined by being in the euro, notably the southern European economies,” Christensen said. “Once the French get into a full- scale crisis, it’s over. Even the Germans cannot pay for that one and probably will not.”  France is already grappling with shrinking investment, higher taxation, job cuts, and pressure from European partners to speed budget cuts.   Germany growth has recently stagnated, France posted no growth last year, and Italy probably contracted more than 2 percent last year.  They are the strongest in the euro area with the likes of with Greece, Spain, and Portugal.  Britain is entering its third recession in a row.  The new bailouts are when world inflation goes into high gear.

The defense industry will likely see some accelerated merger and acquisition activity if Washington’s plan for sequestration kicks in as scheduled.  Obama’s arrogance on Tuesday after returning from a golf vacation in Florida turned off even the liberal news media.  They may yet see him for what he is, Mr. Economic Depression in person.

China needs to spend more time improving themselves and stop trying to sabotage foreign companies.  They do not understand that by national law, companies they damage can claim China pay the cost of the damages or face being cut off from world markets. 

Gold prices that rallied the past 12 years will probably peak again in 2013 according to Goldman Sachs Group Inc. and Credit Suisse Group AG.  Last week the Asian New Year and a flurry of negative speculation pushed gold and silver close to their lows of 2012.  The buying opportunity occurred due to selling to cover losses in other investments and to raise capital.  Soros Fund Management reduced its holdings by 55 percent as of last Dec. 31 from three months earlier.  Bacon’s Moore Capital Management LP sold its entire stake in the SPDR fund and lowered holdings in the Sprott Physical Gold Trust. Paulson & Co., the most successful timing investor in the SPDR fund, kept its stake at 21.8 million shares, a filing showed compared to loser Soros 600,000 share sale.  Based on all the negative chatter last week investors were getting back in.  Soros only talks up investments when he thinks it is time to sell.  Then they get quiet when they actually buy or sell.  The best time to sell was in September before the elections when we said price was becoming reasonable.  Note that silver swings at least 20% more than gold so some diversity is good.

http://finance.yahoo.com/q/ta?s=UGL&t=6m&l=on&z=l&q=l&p=&a=&c=

The boom in health care stock prices just went bust.  The Obama administration has to scale back payments of the government’s Medicare program due to the addition of 40 million people who live on welfare and now are entitled to the medical care of the Presidente of Venezuela.  And indeed a selloff began Tuesday, with stocks of Humana (NYSE: HUM) and UnitedHealth Group (NYSE: UNH) falling. 

Reinsurance is the tax dodge Warren Buffet uses to shield 99% of his investments from US taxes.

Bernanke faced criticism from the Group of 20 officials who said that its QE3 accommodation has weakened the dollar, threatening to fuel a “currency war” of competitive devaluations. The Fed under Bernanke has expanded assets to a record exceeding $3 trillion and pushed down the benchmark interest rate below zero on an inflation adjusted basis.

Hit by the payroll-tax hike, shoppers stayed home and February sales at Wal-Mart were reportedly a total disaster, marking the worst start to any month in seven years. 

World Economies

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

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

The EU economy is expected to contract 0.3% in 2013 after a contraction of 0.6% last year. European Commission officials cited unemployment rate expect to hit 12.2% this year as the slowdowns of unions and criticism increases of communist unions in French factories.  France's Socialist government is struggling to boost the productivity of its industries in the face of increasing global competition and socialist unions.  French firms have announced thousands of job cuts in recent months as the economy stagnation accelerates. 
In America the primary purpose of government is to prevent or stop the use of force against Americans by other people, private corporations, governments and associations.   A major problem with socialism is the rise of the vicious and idle into positions of power where they become corrupt and evil.  The recent candidate for head of the Chinese Communist Party and even his mother, both who never had legal outside jobs were discovered to have mysteriously become billionaires. That Chinese official fell from power last year only when it was proven that his wife had a British citizen poisoned to death and then quickly cremated to continue to conceal a secret illegal deal they had going.   

Japan avoided G-20 currency manipulation criticism thus far.  By buying foreign currency Japan is flooding the world with Yen making Japan’s products cheaper.  This could lead to competition that will cause gold to soar to new record highs as all nations try to become competitive by devaluing their currencies.

Monday industrial metals began a decline in anticipation of a global economic slowdown, with aluminum retreating 2.4 percent from a six-week high. Copper fell 1.1 percent, while nickel slid 2.9 percent.

Banks in AAA rated Sweden are struggling to contain record household debt.  It is a unique set of risks than elsewhere. Rules guiding the industry need to reflect that FSA Director General Martin Andersson said.   It’s a viewpoint that has won support from the financial regulator in the U.K., home to Europe’s biggest banking hub.

Mandiant Corp. said in their report that China’s army apparently is the hacking group that has attacked at least 141 companies worldwide since 2006.  The attacks were carried out by a group that is “likely Chinese government sponsored.” Mandiant said it traced the group, labeled “Advanced Persistent Threat 1”, to four large computer networks in Shanghai. Two of the networks serve the Pudong New Area district, where a secret Chinese army unit called 61398 is based, the report said.  Prior to WWII the USA allowed Japan to steal Phony “Top Secret” naval ship designs which when used made the Japanese fleet easier to sink.  China should have learned that lesson but didn’t.

China ordered cities to limit home purchases and data showed foreign direct investment retreated in January.  China’s markets failed to break through the resistance level and still gave no buy signal after four years that have seen MSNBC/Pravda falsely claiming China had recovered about four times per year.   See their leading indicator very close but it has to break through this resistance level first!  China needs to spend more time improving China and stop trying to sabotage foreign companies.  They do not understand that by national law, companies they damage can claim China pay the cost of the damages or face being cut off from world markets.

http://in.finance.yahoo.com/echarts?s=000001.SS#symbol=000001.ss;range=1y;compare=;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

Draghi, of the European Central Bank sought Monday to ease fears that countries including Japan were deliberately weakening their currencies and that European exporters were threatened with a possible round of competitive devaluations.

The French market indicates stagnation since year 2000.

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

Germany now shows stagnation since 2007.  It failed to break out from the 2007 high even with the world being flooded with stimulation credit.

http://in.finance.yahoo.com/q/ta?s=%5EGDAXI&t=my&l=on&z=l&q=l&p=&a=&c=

=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.  But once again look at the spike up in stock prices with Bernanke’s $85,000,000,000/month gift from America to the stock and bond markets of the world as more people enter poverty, go hungry and lose their jobs under Socialism’s equality of poverty.

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

  The NYSE is similar to the British and Swiss and indicates stagnation since 2007 but no spike up. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 

 American Economy

A 10% or more equities decline is now possible.  The stock market is beginning to re-engaged with the economy and is unstable because the FED created a balance sheet bloated approaching a trillion dollars putting US and world stocks in the stratosphere.   

The DJA in 2013 is also now at a record high. Look at the spike up this year as $85,000,000,000 flows into markets each month.  http://finance.yahoo.com/q/ta?s=%5EDJA&t=my&l=on&z=l&q=l&p=&a=&c=

This week

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

Feb 19

NAHB Housing Market Index Feb 46 versus predicted 48 a 4% miss

Feb 20

Housing Starts Jan 890K down 9% from 973K …But Bloomberg lied again and said U.S. single-family home starts rose.  See the Bloomberg lie…

http://www.bloomberg.com/news/2013-02-20/work-begins-on-most-u-s-single-family-homes-in-four-years.html

Building Permits Jan 925K up from 909K

PPI inflation Jan 0.2% up from -0.2%  

Core PPI Jan 0.2% up from 0.1%

Feb 21

Initial Claims 02/16 362K up 6% from 341K

Continuing Claims 02/09 3148K up 1% from 3114K

CPI Jan 0.0% flat at 0.0%

Core CPI Jan 0.3% sharply higher than the 0.1% last month and at a 3.6% annual rate well exceeding the FED 2.5% inflation rate that is the criteria to cut off QE3.  Will it stay this high?

Existing Home Sales Jan 4.92M down from 4.94M bad

Philadelphia Fed Feb -12.5 fell dramatically from -5.8  bad

Leading Indicators Jan 0.2% fell sharply (60%) from 0.5%  bad

Feb 21 10:30 AM Natural Gas Inventories 02/16 -127 bcf fell from -157 bcf, bad

Crude Inventories 02/16 4.143M up from 0.560M, good

Markets February 21-22, 2013

Look at the Bulls- Bears indicator.  The risk of being long is very high when bulls outnumber bears as we told you for the last month. 

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

Bernanke is pushing on a string.  The FED has run out of leverage at close to 0% short term interest rates.  When rates rise, the bond bubble will burst and that wealth will evaporate over night.  Bernanke is funding mergers that increase layoffs as companies use funds to consolidate and automate.

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

The VIX was worse last week than the low where it was in 2007 before the last bubble burst.  A low VIX normally precedes a panic sell-off. Once that starts the VIX needs to go up above 30 before a bear markets normally ends and it is time to buy.  Low Vix means excessive exuberance.  A 10% equities decline is now possible.

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

 

World stock market updates:

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

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

Nobody wants to work for minimum wage. When liberals raise the minimum wage more people give up because they think it is a disgrace to admit they work for minimum wage. The minimum wage should be left low and instead there should be a small corporate tax incentive to keep the ratio between the highest and lowest corporate annual wage smaller.

“Why S&P? They didn’t do anything that Moody’s or Fitch didn’t do,” said Peter Schiff, chief executive officer of the firm Euro Pacific Capital Inc. to Bloomberg. The whole thing looks like it is pure intimidation because Obama’s lack of budget control will likely lead to another US rating cut if he doesn’t shut down the rating agencies.  It is clearly a conflict of interest for the Obama administration to stifle the rating agencies and S&P may appeal to the World Court because the world community is what stands to loose if S&P cannot tell the truth about US Treasuries. 

Eric Holder’s Fast and Furious program required gun stores to give guns to anyone including potentially the criminally insane.  Executive order prevented freedom of information and cost many lives to be lost in Mexico.

http://www.latimes.com/news/nationworld/nation/la-na-atf-guns-20110912,0,7611438.story

http://cnsnews.com/news/article/plan-let-drug-cartels-buy-guns-us-approved-highest-levels-doj

http://www.militaryphotos.net/forums/showthread.php?221304-Ex-ATF-official-s-gun-at-Mexican-cartel-shootout-that-killed-beauty-queen

http://www.bizpacreview.com/2013/01/18/holders-desperate-moves-to-keep-fast-and-furious-docs-from-public-eye-15337 

CEO John Chambers of Cisco said the U.S. economy was improving slowly, although it's too early to call it a trend. He added he expects the economic situation in Europe to get worse before it gets better.

Fed Reserve Chairman Ben S. Bernanke would like to convince stock and bond investors that the end of the central bank’s bond buying won’t constitute a move toward tighter policy. That may be true but interest rates will rise anyway.   The Fed is currently acquiring $85 billion of securities each month which is more than most countries spend in a year.  The Fed conditions the markets to ignore the debt it is running up and would now like Jim Crammer/MSNBC/Pravda to condition investors to think easy credit will not stop as a prelude to the exit. Bernanke said Dec. 12 in Washington that he wants people to believe, the end won’t be “a turn to tighter policy.” The Fed for the first time linked the outlook for its main interest rate to unemployment in addition to inflation, and expanded its asset purchase program by buying an additional $45 billion in Treasury securities each month starting in January.   Ending the Fed’s third round of quantitative easing carries greater uncertainty than completion of the previous two because those were introduced with defined amounts and durations.   But the Fed cannot have it both ways.  The markets hit new highs when QE3 was announced and can expect to lose all the gains when the QE3 cash flow is gone.  Cohen, of Envision Capital Management Inc. in Los Angeles, already lowered the interest-rate sensitivity of their $325 million portfolio in preparation.  “The markets are on edge; and any hint that things are changing, and we will see the repercussions,” Cohen said. “I’m one of the old dinosaurs -- and I cannot remember when there was such a chorus in the investment landscape that all are calling for higher rates.” The world’s biggest bond fund at Pacific Investment Management Co.; Rogers Holdings; Wells Capital Management Inc. and Goldman Sachs Group Inc. all have voiced concern about QE3.   Cohen said. Central bankers have been discussing possibly curtailing or halting their asset purchases this year. That surprised analysts and traders, pushing up yields on the benchmark 10-year Treasury note 0.07 percentage point that day.  

Gold now seems to be priced near the low end of its trading range.

http://in.finance.yahoo.com/echarts?s=UGL#symbol=ugl;range=2y;compare=;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined

Gold declined to the lowest price this month in London as physical demand slows during this week’s Lunar New Year in Asia.  China, 2011’s second-biggest gold buyer, after India, and most Asian markets are closed for this week’s holiday. Gold is down 0.8 percent this year after rallying for a 12th straight year in 2012. “The absence of the Chinese market this week means demand from other regions has a larger gap to plug, thus exposing prices to a fragile floor,” Suki Cooper, an analyst at Barclays Plc in New York, wrote today in a report. Still, “the broader macro environment remains supportive for prices given low interest rates and global balance sheet expansion.” 

Nick Xanders, of BTIG Ltd. in London said the stock markets have gone up despite the fact that the financial numbers haven’t. It is asking a lot to buy the market today on the hopes of an improvement in the second half after what is looking to be a much weaker first half than was predicted.  

World Economies

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

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

Standard & Poor’s reduced Slovenia’s credit rating was cut to A- as the government’s announced support for state-owned banks will lead to higher-than-previously forecast debt.

Swiss property prices are surging as investors funnel money into one of Europe’s most stable economies amid the sovereign debt crisis and record-low interest rates.  Lenders will have to add about an extra 1 percent of risk- weighted assets linked to domestic residential mortgages to comply with Bern’s new rules.  They want to avoid a housing collapse like the one that crippled the economy in the early 1990s.  Swiss home prices are expected to fall 5% this year.

The recession in the euro area deepened showing the worst performance in four years. Gross domestic product in the 17-nation region fell 0.6 percent in the fourth quarter alone, much worse than the European Union’s statistics office predicted.  It is the worst since 2009. 

In Japan, GDP shrank an annualized 0.4 percent, amid falling exports and a business-investment slump, compared with the forecast for 0.4 percent growth. That followed a revised 3.8 percent drop in the third quarter, the Cabinet Office said.

Factory production in the 17-nation euro currency bloc coincidently rose 0.7 percent in December from the previous month, when it declined a revised 0.7 percent, the European Union’s statistics office in Luxembourg said.

Chinese demand for cosmetics containing bird’s nest extracts illustrates just how backward the thinking in China still is today.  China is still the world’s center for the manufacture of disgusting animal excrement formula’s that deplete endangered species to satisfy extremely gullible people.

Vladimir Putin says Bernanke is endangering the global economy by abusing the US dollar monopoly. He’s now betting against Obama, Bernanke, and the US dollar.

“The fourth quarter was a double whammy for Europe, with austerity and exports to the U.S. falling off,” said Gilles Moec, co-chief European economist at Deutsche Bank in London.

Finally China’s markets are approaching a buy signal after four years that have seen MSNBC/Pravda falsely claiming China had recovered about four times per year.   Do you see their leading indicator very close to giving a reliable buy signal?  But it has to break through this resistance level first!

http://in.finance.yahoo.com/echarts?s=000001.SS#symbol=000001.ss;range=1y;compare=;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 The French market indicates stagnation since year 2000.

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

German stocks in 2013 are now all-time highs the same as when the bubbles burst in 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;

 A triple-dip recession looms as UK economy falters again.  The British market indicates peaking in 2000 and stagnation since 2007.  Look at the recent sharp spike up in is stock prices the last month as Bernanke’s $85,000,000,000 each month even exceeds the capacity of the American economy to absorb and it begins to be wasted on investments abroad of which most will be lost forever.  QE crippled Japan by 1990 and they still have not recovered.  The Obama/Bernanke bubble will destroy even the British, French, German and others that are being sucked into this socialist tornado of cash.

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

 The Swiss market indicates stagnation since 2007.  But once again look at the spike up in stock prices with Bernanke’s $85,000,000,000/month gift from America to the stock and bond markets of the world as more people enter poverty, go hungry and lose their jobs under Socialism’s equality of poverty.

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

  The NYSE is similar to the British and Swiss and indicates stagnation since 2007 but no spike up. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 American Economy

The credit-swaps index rose 0.8 basis points as investor confidence deteriorated sharply. The contracts pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt.  This gauge of U.S. corporate risk climbed as the recession in the euro-area deepened with the worst performance in four years.

The stock market continues disengaged from the economy and is becoming increasingly unstable because the FED has created a balance sheet bloated at a rate of $85,000,000,000 per month putting US stocks in the stratosphere.   

The DJA in 2013 is also now at a record high. Look at the spike up as $85,000,000,000 flows into markets each month.  http://finance.yahoo.com/q/ta?s=%5EDJA&t=my&l=on&z=l&q=l&p=&a=&c=

 This week

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

Feb 12

Treasury Budget Jan +2.88B As new taxes for 2012 come in

Feb 13

MBA Mortgage Index 02/09 -6.4% much worse from3.4%

Retail Sales Jan 0.1% down from 0.5%

Retail Sales ex-auto Jan 0.2% down from 0.3% 

Export Prices ex-ag. Jan 0.5% up sharply at 6% annual inflation rate from -0.2% 

Import Prices ex-oil Jan 0.2% up also -0.1% 

Business Inventories Dec 0.1% not increasing a fast as 0.3% last time

Crude Inventories 02/09 0.560M down from 2.623M with rising gasoline prices

Feb 14

 Initial Claims 02/09 341K fell from 366K

Continuing Claims 02/02 3114K fell from 3224K

Natural Gas Inventories 02/09 down -157 bcf 

Feb 15

Empire Manufacturing Feb 10.0 cancelled out last months decline of -7.8

Net Long-Term TIC Flows Dec $64.2B says foreigners continue to invest in the USA $52.3B

Industrial Production Jan -0.1% declined from 0.3%

Capacity Utilization Jan 79.1% topping out up from 78.8% . Production appears to be about as high as it can go without new investment.  The capacity and production numbers together contradict eachother.

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

Mich Sentiment Feb 76.3 improved from 73.8

 Markets February 15, 2013

 

Bernanke is pushing on a string.  The FED has run out of leverage at close to 0% short term interest rates.  When rates rise the bond bubble will burst and that wealth will evaporate over night.

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

The VIX is below where it was in 2007 before the last bubble burst.  A low VIX normally precedes a panic sell-off. Once that starts the VIX needs to go up above 30 before a bear markets normally ends.  http://finance.yahoo.com/q/bc?s=%5EVIX&t=5y&l=on&z=l&q=l&c=

Nobody wants to work for minimum wage.  When liberals raise the minimum wage more people give up because they think it is a disgrace to admit they work for minimum wage.  The minimum wage should be left low and instead there should be a small corporate tax incentive to keep the ratio between the highest and lowest annual wage smaller.

Is it possible that world trade just flat lined?  Obama’s policy is destroying American shipping now by supporting crippling wages ($180K/yr), benefits (9 wk vacations), and pensions (80%+of retirement salary) for unionized unskilled dockworkers while all other Americans pay for it in costs crippling the economy.  State and City workers have also coerced their benefits using union dues to elect corrupt politicians and buy arbitrators.  http://www.bloomberg.com/quote/BDIY:IND/chart

 

World stock market updates:

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

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

I know Chinese, Russians, and Europeans read this blog. The first part of today’s blog is devoted to a corrosive disease that is out of control and destroying the moral and ethical fiber of some the USA and is symptomatic of the government leader’s incompetence and the entitlement society that is ultimately destroying all the other world economies by seeking the lowest moral and ethical common denominator. And the Chinese, Russians, and Europeans are literally letting Bernanke and others steal their assets selling them worthless IOU’s backed with balance sheets with other worthless IOU’s. By falling for the Bernanke ploy other nations subsidize the US economic fraud by making American products cheaper to buy and put Chinese and Europeans out of work.

They then force EU banks to weaken their own currencies until some unfortunate day, once again the credit markets will freeze up completely and no one will be able to get a loan, or get cash, and cities and nations will begin to simultaneously declare bankruptcy, and stocks, bonds, treasuries and all forms of paper value will become worthless overnight.  Then real estate prices will plummet causing massive defaults and industries will become worthless because there is no one who can afford the deteriorating vacant buildings.   

Then there will be starvation, riots, terrorism running wild, and revolutions and nuclear explosions and complete chaos in many parts of the world.  That is what many American’s now believe and that is why they are arming themselves and stock piling food all hidden away.  They expect marauding groups to run uncontrolled killing and stealing

An executive at Standard & Poor's was very clear: "This market is a wildly spinning top which is going to end badly." Unlike the Fed, the US Justice Department, or the SEC, the credit rating firm Standard and Poor's Ratings Services was doing due diligence assessing the risks of US debt.   Holder’s U.S. Justice Department will now harass them with civil charges over SandP ratings of mortgage bonds the year before the 2008 financial meltdown that was caused by the (Dodd-Barney-Obama) liar loans that were guaranteed by government agencies Fannie and Freddie.   Fannie and Freddie were stacked since 2004 with democrat racial minority political patronage jobs and were two agencies that did zero due diligence and were deeply involved in perpetrating the fraud which no one in Washington wants to investigate.  Standard and Poor's Ratings Services did not know about the US agency liar loan fraud at the time but instead commented on how fast the economy was spinning and the inevitable consequence of a sudden stop. 

Right now, this stock market is a wildly spinning top which is going to end badly as soon as Bernanke stops writing blank checks to the treasury.  So there, our dirty Fed secret is out and every one of you knows that secret now and can expect Obama and Holder to sue you too for knowing the problem and dong nothing to stop it. 

According to Rasmussen 61% of Americans think Obama’s policies will keep American unemployment the same or higher into next year.  Expectations for Obama’s competency have been so low that people are happy just that no one is killing USA ambassadors and tourists every week.  Of course now we have troops in Africa again and we are supplying the Egyptian Moslem Brotherhood with American F16s to drop Obama peace on Israel.  To the Brotherhood there can only be peace when their enemies are all dead or converted.  Obama knows that because he converted to Moslem for several years.  But since you now know too much you can expect Obama-Holder to investigate you because you obviously have brains.  You may have been one of the millions of Americans that told SandP about the spinning top analogy for the liar loan market.  To Obama-Holder if you have half a brain you must be getting inside information or are yourself a market manipulator.  According to Obama-Holder if you get a reasonable salary they you just have dumb luck and it needs to be redistributed to those who are dumb and down on their luck.  Liberals sound fair don’t they?   

Reverend Jackson, a Chicago resident called for the U.S. Department of Homeland Security to help patrol the streets of Chicago.  
http://www.reuters.com/article/2013/02/03/us-usa-crime-chicago-idUSBRE91200X20130203?feedType=RSS&feedName=politicsNews&utm_source=dlvr.it&utm_medium=twitter&dlvrit=574655

 

Jackson said Chicago mayor Rahmn Emanuel and city police are unable to address the problem and the federal government needs to intervene.  The phrase “Confederate ideology” is shorthand for any political philosophy that stresses individual and states rights or adherence to the US Constitution.  The Reverend Jackson said the Second Amendment is a problem because it provides domestic terrorists (Conservatives, Republicans, Catholics, Babtists, straight people, honkeys, and hunters) with the ability to “do something about how they feel” in their effort to “fight the government.” 

http://www.youtube.com/watch?v=Tt2yGzHfy7s 

http://www.youtube.com/watch?v=_fO-usAlqak 

The markets came under heavy selling pressure, tumbling away from five-year highs, as traders once again grew worried about political uncertainty in the euro zone and watched energy prices sink. 

Leo Abruzzese, global forecasting director of the Economist Intelligence Unit, said that the three main engines of the global economy—North America, Europe and China—face a difficult year. “…going into 2013, Europe is already in a recession. When you have a $15 trillion economy that’s contracting, that’s going to be an anchor globally.”  And while China has had what Abruzzese called “a great run” in the last 22 years it too is slowing down. “China’s economy as recently as a few years ago would grow by 11% or 12% a year. This year it might do 8%.”  Finally, there is the United States, which is not in stagnation.   For two decades beginning in 1988, central banks such as the Bank of Canada reduced their gold holdings. But now, with global economic uncertainty, many of them are turning away from U.S. dollars, whose value continues to decay. In the absence of another truly global currency the banks are repurchasing gold.

“Freedom of religion and the right of peoples of faith to be protected against government intrusion must be sacrosanct,” Hatch said in a statement. “Unfortunately, this White House doesn’t seem to believe in that constitutional guarantee -- forcing private companies to provide health-care services in violation of their beliefs.”

The average household spent $2,912 last year on gasoline, according to the Energy Department’s independent Energy Information Administration. That reflects just under 5% of average income after taxes, the highest estimated percentage spent on gasoline in nearly three decades. 

Orders placed with U.S. factories increased less than forecast in December, reflecting a drop in non-durable goods.

The United States is sending weapons to the Muslim Brotherhood in Egypt.   The Senate Thursday voted down a pro-Israel effort that would have banned Muslim Brotherhood -controlled Egypt from getting 20 modern U.S. F-16 warplanes and 200 Abrams tanks. The 19 senators who opposed Obama’s outrageous move to give weapons to an avowed enemy of the free world were our finest.  They were: Boozman (AR), Coats (IN), Cornyn (TX), Crapo (ID), Cruz (TX), Fischer (NE), Grassley (IA), Heller (NV), Lee (UT), Moran (KS), Paul (KY), Risch (ID), Roberts (KS), Rubio (FL), Scott (SC), Sessions (AL), Shelby (AL), Thune (SD), Vitter (LA), 

Obama is so far offering $1 in spending cuts for every $42 increase spent on cell free phones, food stamps traded for gambling money, and a 30% increase in back disabilities claimed with no physical evidence.

KFC parent Yum Brands Inc on Monday warned that it expects 2013 per-share earnings to shrink rather than grow, as it grapples with a food safety scare that ensnared some of its chicken suppliers the China market where the company gets more than half of its overall sales and operating profit.  Yum reported a 6 percent drop in fourth-quarter sales at established restaurants "adverse publicity" regarding its poultry supply. 

We are not deleveraging any more.  The Fed is leveraging the money supply up creating a bubble and no economic recovery at all. We are in the Obama tripple dip Depression.  The Fed is pushing on a string flooding the world with credit.  That is the reason for the current stock market and bond bubble.  The Fed more than tripled its balance sheet since 2008 to more than $3 trillion through its bond purchases, known as quantitative easing.  Treasuries are now giving a higher return but that means that the dollar value of the “safe” treasuries Americans own declined.  Treasuries, stocks, and bonds are all near epic highs and the bubble is just waiting to pop.    

World Economies

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

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

Peugeot, France’s biggest carmaker is eliminating 17 percent of its French workforce as part of the first shutdown of an auto plant in France in two decades.  Last July, Industry Minister Arnaud Montebourg called the plan “unacceptable.” Now he says it’s inevitable.  “We haven’t found any other solution,” It is the latest evidence of the reality of France’s economy curbing the ambitions of President Francois Hollande’s high spending deficit piling Socialist government. With France teetering on the brink of a triple dip recession, facing joblessness at a 15-year high and the government having pledged to finally shrink its budget deficit.  Hollande may be forced to go the way of Germany’s last Social Democrat, former socialist German Chancellor Gerhard Schroeder who made it easier to fire staff, forced those out of work for more than a year to accept any reasonable job offer and reduced long-term benefits. German carmaker VW in 2006 extended the short work week by six hours with no extra pay and cut 20,000 jobs in western Germany, at its Volkswagen factory.   Operating profit doubled in 2007.

“At some point, you have to take reality into account or bankruptcy is assured,” said Nicolas Tenzer, director of the CERAP political studies institute in Paris. “This is the realism phase of Hollande’s socialist government.” Obama likes to copy the European socialists so maybe he will catch on soon. 

With bulk trade at record lows it is obvious that the entire world is now in the Obama-Dodd-Barney-Obama liar-loan depression.  As Adam Smith noted at the time of the American Revolution, weak currencies drive out the strong.  The EU’s  bank head Draghi cannot boost confidence without encouraging euphoria which makes the Euro stronger and hurts EU exports. With weak monetary policies in the U.S. and Japan weakening the dollar and the yen, the ECB is under pressure to weaken the euro.  Liberal redistribution economic policies put the world economy in a toilet bowl.

There is evidence the cumulative toxic effect that pollution is having on children in China that suggests the acute sickness triggered this year by Beijing’s worst smog- cloaked days may be a prelude of chronic heart disease and behavioral disorders decades later. 

Sohu.com Inc., the owner of China’s second-largest online video site, fell the most in more than nine months after its first-quarter profit forecast trailed analysts’ estimates amid rising costs.  The shares fell dropped 6.9 percent, the steepest intraday plunge. 

 Oil tumbled the most in two months after equities dropped on political turmoil in Europe. 

In Spain, Prime Minister Mariano Rajoy faced increasing calls to resign, and falling public support, after his Popular Party was involved in a slush fund scandal in which individuals received non-salary payments for at least 18 years. Italy, Europe's third-biggest economy, is still struggling with a heavy sovereign debt load, slow growth, and a public broadly tired of austerity.   "The risk of ungovernability remains very high, in our view,” Silvio Peruzzo, an economist at Nomura, wrote in a note to clients. Most important from a market perspective, the yields on both countries benchmark 10-year bonds climbed Monday. Italy's borrowing costs are up 0.06-percentage point from last week, while Spain's costs rose 0.11-percentage point. Both are sufficient to stoke concerns. Indeed, the Euro Stoxx 50, which tracks eurozone blue-chip stocks, sold off.  

Finally China’s markets are approaching a buy signal after four years that MSNBC/Pravda has lied and claimed China is in growing again.   Do you see their leading indicator close to giving a reliable buy signal?  But it has to break out of this resistance level!

http://in.finance.yahoo.com/echarts?s=000001.SS#symbol=000001.ss;range=1y;compare=;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 

The French market indicates stagnation since 2000.

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

 German stocks in 2013 are now all-time highs as when the bubbles burst in 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;

A triple-dip recession looms as UK economy falters again.  The British market indicates peaking in 2000 and stagnation since 2007.  Look at the sharp spike up in is stock prices the last month as Bernanke’s $85,000,000,000 each month even exceeds the capacity of the American economy to absorb and it begins to be wasted on investments abroad of which most will be lost forever.  QE crippled Japan by 1990 and they still have not recovered.  The Obama/Bernanke bubble will destroy even the British, French, German and others that are being sucked into this socialist tornado of cash.

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

 

The Swiss market indicates stagnation since 2007.  But once again look at the spike up in stock prices with Bernanke’s $85,000,000,000/month gift from America to the stock and bond markets of the world as more people enter poverty, go hungry and lose their jobs under Socialism’s equality of poverty.

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

 The NYSE is similar to the British and Swiss and indicates stagnation since 2007 but no spike up. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

  American Economy

The stock market continues disengaged from the economy and is becoming increasingly unstable because the FED has created a balance sheet bloated at a rate of $85,000,000,000 per month.  Volume is extremely low meaning very little cash can and is controlling the market.

 

The DJA in 2013 is also now at a record high. Look at the spike up as $85,000,000,000 flows into markets each month. 

http://finance.yahoo.com/q/ta?s=%5EDJA&t=my&l=on&z=l&q=l&p=&a=&c=

 American Economy

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

Feb 4 

Factory Orders Dec 1.8% recovered from 0.0%  Good

Feb 5 ISM Services Jan 55.2 dropped sharply from 56.1 Bad

Feb 6

MBA Mortgage Index 02/02 3.4% recovered from -8.1% Bad

Crude Inventories 02/02 2.623M dropped from 5.947M gasoline prices jumped Bad

Feb 7

Initial Claims 02/02 366K flat from 368K Bad

Continuing Claims 01/26 3224K up from 3198K Bad

Productivity-Prel Q4 -2.0% -sharply down from 3.2% Bad

Unit Labor Costs Q4 4.5% up sharply from-2.3% Bad

Natural Gas Inventories 02/02 -118 bcf down sharply again Bad

Consumer Credit Dec $14.6B declining from $16.0B Bad

Feb 8

Trade Balance Dec -$38.5B down as international trade slows further -$48.7B Bad

Wholesale Inventories Dec -0.1% down from 0.6% Good

 

Markets February 8, 2013

Looming federal government spending cuts and tax increases will keep a drag on the economy fiscal squeeze, according to Zandi.  New home sales are lower now than during the bottom of the recession of 1991.  But it has been hyped as, “New-home sales the most since 2009” to get people into the stock market now with the DJI at an historic high.  Americans are being lead in at the worst time. 

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

 

Virtually every American industry reported poorer earnings this quarter but virtually every one was hyped as a success story to deceive American investors on a scale never before we had Obama socialist reporting like the grand old Cramer/MSNBC/Pravda.

The VIX is below where it was in 2007 before the last bubble burst.  A low VIX normally precedes a panic sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end.  http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=l&q=l&c=

Is it possible that world trade just flat lined?  Obama is destroying American shipping now by supporting crippling wages ($180K/yr), benefits (9 wk vacations), and pensions (80%+of retirement salary) for unionized unskilled dockworkers while all other Americans pay for it in costs crippling the economy.  State and City workers have also coerced their benefits using union dues to elect corrupt politicians and buy arbitrators.  http://www.bloomberg.com/quote/BDIY:IND/chart

World stock market updates:

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

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

Obama’s ACA will be the next major Obama idea to cripple the American Economy because Obama and his advisors remain clueless to how socialist, much less capitalist economies work and finance themselves. In socialist health care countries such as the members of the EU they have Nation-State Health Care that does not destroy the corporations. European corporations do not have to pay the health care costs or other national costs directly as Obama’s ACA does. A national educational system or a national health care system in the EU is not just a phantasy of American leftists it also shows their complete ignorance of world socialism.

I lived in the EU for a while.  All costs are paid with an EU national sales tax which means American corporations that sell to the EU pay the EU health care taxes as well.  The individual EU “nation state” governments require it so the governments use the sales tax VAT revenue to pay for it as well as all government welfare costs. The Obama Affordable Care Act “ACA” requires that American companies with 50 or more full-time employees provide the health insurance for all workers and that means that cost is added to the cost of American products and so if Spanish and Chinese buy an American product they realize they are subsidizing the American government. This is an issue of concern for every American corporation but for many smaller businesses this can be a huge problem.  Under Obama ACA American products will cost more than EU produced products in the USA as well as abroad.  Obama adds the cost of Obama socialism to all American products while the socialist EU does the opposite and taxes all the world products equally with a VAT.   In the EU they do not try to hobble their corporations. They are slowly trying to move from nation-state heath care to a true EU national healthcare.  Neither true National Education nor true National Health Care exist yet in the EU; they are “Nation State” programs in their own languages and under their own laws.  Spain is a “nation State” of the EU with a GDP less than the American state of Delaware.  The school systems in the EU have their oun language and nationalist courses of study. 

A national educational system or a national health care system in the EU at this time is just a phantasy of American leftists and it also shows their complete ignorance of world socialism.

Practically every nation state in the EU has a different educational system and a different health care system and uniquely different corporate incentive programs.  Obama’s ACA will be the next major Obama idea to cripple the American Economy because Obama and his advisors remain clueless to how socialist much less capitalist economies work finance themselves.  Obama’s ACA cripple America’s corporations with the burden of Obama socialism.   In contrast, anyone selling products to EU Nation States subsidizes their socialism with at least 20% of direct sales taxation plus at least 15% of hidden socialist taxes just to stay in business in EU nation-states.

http://www.europarl.europa.eu/news/en/pressroom/content/20101025IPR90069/html/An-EU-citizen's-right-to-get-medical-treatment-in-another-Member-State 

Bernanke has run out of QE manipulation.  He has driven America to the point where he is pushing on a string because he cannot make interest rates lower than zero.  Bernanke has built an economic Ponzi scheme of historic proportions that probably will be the next worthless paper bubble to collapse world financial markets. See:

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

US Defense spending plummeted 22% in the last three months of the year, which foreshadows the dangers to the economy as thousands of GI’s are put on the streets and contractors go out of business and lay off civilian employees.

Blackberry plans to burry the competition but when the new BlackBerry phones appear on store shelves, the price may deter some buyers. The Z10 will cost at least $149 with a wireless contract. 

Consumers' views on the labor market are weaker. The "jobs hard to get" index rose for the first time since September to 37.7 from 36.1 the month before. The "jobs plentiful" index fell to 8.6 from 10.8 

Virtually every American industry reported poorer earning this week but virtually every one was hyped as a success story to deceive American investors on a scale never before we had Obama socialist reporting like the grand old USSR/Pravda and now the Obama MSNBC/Pravda. 

Ford shares slumped as it forecasts Europe loss and socialist unions occupied factories and claimed the remaining inventories and assets.  Ford could face a 100% write-off with Obama’s double dip depression.

Ingersoll-Rand Plc reported a 2.7 percent drop in earnings on weak demand for its heating and cooling systems and other industrial equipment.

Merck, the No. 2 U.S. drug maker on Friday said it earned $1.4 billion, or 46 cents per share, in the fourth quarter. That compared with $1.51 billion, or 49 cents per share, in the year-earlier period, when the company took charges for acquisition and restructuring expenses.

Boeing’s biggest problem is they are still unable to understand the Dreamliner fire problem.  With no problem there is no problem to fix until it is too late and then Boeing’s reputation will be lost.   Everything is fine except for the still “unknown” cause of the in-flight fires. 

Apple will introduce another device with 64gig ($20) more memory and will only cost $250 more.  Apple fans are slowly going broke at this point and Asia will not even touch the overpriced products.  But if Apple charges what their products are worth there will be very little earnings but lots of losses.

Caterpillar on Monday reported earnings of $1.91 a share, excluding a write-down of 87 cents a share relating to a China holding. That compared to earnings of $2.32 a share in the year-earlier period.  With that write down they actually only made $1.04 per share or a 55% drop in earnings due to massive accounting fraud in China.  Large inventories of unsold Caterpillar's bulldozers, tractors, and other machines have been accumulating in warehouses due to slowing economies in China, Europe, and the U.S.  Inventory levels, grew another $1 billion above year-ago levels. 

New home sales are lower now than during the bottom of the recession of 1991.  But it is hyped as, “New-home sales the most since 2009” to get people into the stock market now with the DJI at an historic high.  Americans are being lead in at the worst time. 

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

http://www.businessinsider.com/shiller-housie-prices-2013-1#ixzz2J5uhjXbl 

We are not deleveraging any more.  The Fed is leveraging the money supply up creating a bubble and no economic recovery at all. We are in the Obama Depression.  The Fed is pushing on a string flooding the world with credit.  That is the reason for the current stock market and Bond bubble.  The Fed more than tripled its balance sheet since 2008 to more than $3 trillion through its bond purchases, known as quantitative easing.  Treasuries are now giving a higher return but that means that the dollar value of the “safe” treasuries Americans own declined.  Treasuries, stocks, and bonds are all near epic highs and the bubble is just waiting to pop.   

Greece’s socialist candidate’s chief economic advisor was interviewed on Squawk Box and said Obama was a socialist as if that is a good thing.

Obama’s policies are destroying the wealth of the wealthiest nation in the world.  Churchill was right, socialism delivers equality of poverty and it pulled down Japan and now is now pulling down the USA.  

The three-judge high court ruled that the Executive Order appointments President Obama made to the National Labor Relations Board last year are Unconstitutional.  But the ruling has much broader constitutional significance, saying Mr. Obama erred when he said he could even claim the power to determine when he could make such appointments.  The constitution says the only time he can do it is in an emergency in the week that only occurs every 2 years.  Obama cannot plan ahead to bypass the American Constitution it must be a legitimate emergency appointment.  It is an abuse of Executive power to delay appointments to avoid the Constitutional right and duty of the US Senate to question the credentials and competency of Presidential appointees. 

When will the Bernanke Bubble burst?  Federal Reserve Chairman Ben S. Bernanke’s unprecedented bond buying pushed the Fed’s balance sheet to a record $3 trillion as he has the Fed now purchasing $85 billion of securities every month, using the full force of its balance sheet to inflate securities markets. The central bank already began $40 billion in monthly purchases of mortgage-backed securities in September and has now added $45 billion in Treasury securities to that pace this month flooding world markets with money that has no place to go but into stocks and other securities.  Some people say the American collapse could cause US unemployment to be the highest in the world.  One person thinks 50% US unemployment and socialist equality of poverty will make the fiscal cliff fade quickly from memory as an inconsequential event in this administration.  Bernanke is effectively leveraging US economic risk similar to the way the banks did which caused small losses to collapse the banking system in 2008. 

World Economies

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

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

Caterpillar the world's largest maker of construction equipment posted sharply lower profit due to a $580 million loss connected with accounting fraud at its Chinese subsidiary and weak demand among its dealers. Caterpillar's bulldozers, tractors, and other machines have been accumulating in warehouses due to slowing economies in China, Europe, and the U.S. 

Under socialism it is impossible to lay off 50% of the workers at a steel plant in China and hire the same number somewhere else to build railroads and electrify rural areas.  They now need to deal with infrastructure and high pollution if they are going to resume real national economic growth in value but socialism freezes the redistribution of labor. 

 http://in.finance.yahoo.com/q/bc?s=000001.SS&t=5y&l=on&z=l&q=l&c=

 Finally China’s markets are approaching a buy signal after four years of MSNBC/Pravda lying and claimed China was in growing again.   Do you see their leading indicator close to giving a reliable buy signal?  We don't... it has to break out of this current resistance level!

http://in.finance.yahoo.com/echarts?s=000001.SS#symbol=000001.ss;range=1y;compare=;indicator=;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 The French market indicates stagnation since 2000.

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

German stocks in 2013 are now all-time highs as when the bubbles burst in 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;

A triple-dip recession looms as UK economy falters again.  The British market indicates peaking in 2000 and stagnation since 2007.  Look at the sharp spike up in is stock prices the last month as Bernanke’s $85,000,000,000 each month even exceeds the capacity of the American economy to absorb and it begins to be wasted on investments abroad of which most will be lost forever.  QE crippled Japan by 1990 and they still have not recovered.  The Obama/Bernanke bubble will destroy even the British, French, German and others that are being sucked into this socialist tornado of cash.

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

The Swiss market indicates stagnation since 2007.  But once again look at the spike up in stock prices with Bernanke’s $85,000,000,000/month gift from America to the stock and bond markets of the world as more people enter poverty, go hungry and lose their jobs under Socialism’s equality of poverty.

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

 The NYSE is similar to the British and Swiss and indicates stagnation since 2007 but no spike up. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 American Economy

The stock market continues disengaged from the economy and is becoming increasingly unstable because the FED has created a balance sheet bloated at a rate of $85,000,000,000 per month.  Volume is extremely low meaning very little cash can and is controlling the market. 

The DJA in 2013 is also now at a record high. Look at the spike up as $85,000,000,000 flows into markets each month.  http://finance.yahoo.com/q/ta?s=%5EDJA&t=my&l=on&z=l&q=l&p=&a=&c=

 

This week

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

Jan 28 8:30 AM Durable Orders Dec 4.6% up from 0.8% , good

Jan 28 8:30 AM Durable Goods -ex transportation Dec 1.3% down from 1.6% bad

Jan 28 10:00 AM Pending Home Sales Dec -4.3% sharply lower from 1.7% bad

Jan 29 9:00 AM Case-Shiller 20-city Index Nov 5.5% up slightly from 4.3% good

Jan 29 10:00 AM Consumer Confidence Jan 58.6 down sharply from 66.7 bad

Consumer Confidence Erases 2012 Gain on Payroll Tax. Confidence among U.S. consumers declined more than forecast in January, reaching the lowest level in more than a year as higher payroll taxes took a bigger bite out of Americans' paychecks

http://www.cnbc.com/id/100415909

Jan 30

 MBA Mortgage Index 01/26 -8.1% got much worse from 7.0%  Bad

ADP Employment Change Jan 192K down from 215K Bad

GDP-Adv. Q4 -0.1% collapsed from 3.1% bad

Chain Deflator-Adv. Q4 -0.6% deflationary down from 2.7% bad

Crude Inventories 01/26 5.947M up from 2.813M  good

FOMC Rate Decision Jan 0.25% no change from 0.25% 

Jan 31

Challenger Job Cuts Jan -24.5% terrible job cuts from 34.4%

Initial Claims 01/26 368K up significantly from 330K - bad

Continuing Claims 01/19 3198K up from 3157K   bad

Personal Income Dec 2.6% makes no sense from 0.6%  manipulation/error

Personal Spending Dec 0.2% downslightly from 0.4%  bad

PCE Prices - Core Dec 0.0% 0constant 0.0%  good

Employment Cost Index Q4 0.5% up from 0.4%  ok

Chicago PMI Jan 55.6 good improvement from 48.9   50 is no change

Natural Gas Inventories 01/26 -194 bcf getting scarcer from -172 bcf Not good

See how Americans are deceived about the housing industry just like citizens were in the USSR and are in China today.  Here is the real new housing industry situation. 

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

Payrolls rose only 157,000 in January down from 196,000 advance December and a 247,000 surge in November, Labor Department figures showed today in Washington. The revisions show the jobless rate increased to 7.9 percent from 7.8 percent.

Feb 1

Nonfarm Payrolls Jan 157K down from 196K

Nonfarm Private Payrolls Jan 166K down from 202K

Unemployment Rate Jan 7.9% up from 7.8% 

Hourly Earnings Jan 0.2% down from 0.3% 

Average Workweek Jan 34.4 down from 34.5

 

Markets February 1, 2013

Virtually every American industry reported poorer earnings this week but virtually every one was hyped as a success story by grand old MSNBC/Pravda.

The VIX is below where it was in 2007 before the last bubble burst.  A low VIX normally precedes a panic sell-off. Once that starts the VIX needs to go up above 30 until bear markets normally end.  http://finance.yahoo.com/q/bc?s=%5EVIX&t=6m&l=on&z=l&q=l&c=

Is the Baltic Dry Index is near a new low.  China probably is at a bottom.  

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

Is it possible that world trade just flat lined?  Obama is destroying American shipping now by supporting crippling wages ($180K/yr), benefits (9 wk vacations), and pensions (80%+of retirement salary) for unionized dockworkers while all other Americans pay for it in costs crippling the economy.  State and City workers have also coerced their benefits using union dues to elect corrupt politicians and buy arbitrators.  http://www.bloomberg.com/quote/BDIY:IND/chart

World stock market updates:

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

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