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