June 7...We possibly have three more years to go before this current great depression is lifted from the USA. It is the longest economic malaise since the one that started in 1929. FDR introduced socialist spending in 1932 when he was elected and dragged the depression out seven more years until 1939 when America began arming Europe against the Nazi. WWII put America back to work not Greek style socialism or Japanese style quantitative easing that has stagnated the Japanese economy for the last for 23 years. The great depression had a series of stock market crashes not just one. We could see another stock market crash at any time.

The dollar began to tumble on Thursday as the threat of inflation due to QE3++ and a perpetual Obama depression (the worst of both economic worlds) is slowly being put in place because the free world is being overrun by unemployables from oppressed nations about the world.  For years the cities and states in the USA that offered the most welfare and free-bees like cell phone toys and electronic toys became the magnets for the lazy and the exploiters of American workers while seeking the gifts of the big government welfare state.  Now the national borders have been opened and the flood gates of indigents and drunken drivers have come to the trough of the free world.   Of course every indigent has a right to a phone and a great car.   It is amazing that the latest statistics indicate that the Americans who are over 55 are the most qualified for today’s jobs and have the lowest unemployment rate.  The liberals have destroyed the educational system and dummied down the entire free world while most of the oppressed world prays incessantly for “death to all freedoms.” 

 

The National Security Agency has been collecting the telephone records of 121 million U.S. customers of Verizon under a top secret court order, according to a report in Britain's Guardian newspaper.  The secret Foreign Intelligence Surveillance Court order of April 25 is good until July 19.  The order requires Verizon, one of the nation's largest telecommunications companies, on an "ongoing, daily basis" to give the NSA information on all telephone calls in its systems, both within the U.S. and between the U.S. and other countries.  The newspaper said the document they obtained, shows for the first time that under the Obama administration the communication records of millions of U.S. citizens were being collected indiscriminately and in bulk, regardless of whether they were suspected of any wrongdoing other than criticizing the administration.  However, could the administration also be sharing private business information with George Soros and other socialist supporters? On Tuesday MSNBC discussed the possibility that financial and stock market sensitive data are being shared with some before being made public.   The problem may go beyond the invasion of privacy of Americans demigods in government.  

http://www.military.com/daily-news/2013/06/06/report-govt-scooping-up-verizon-phone-records.html?ESRC=eb.nl

 

Here is why the gap between the wealthy and the poor is increasing under Obamanomics and the gap between the employed and the unemployable is also increasing under Obamanomics.  Bloomberg apparently agrees that Bernanke Quantitative Easing actually has caused money to leave less risky US corporate investments in research and production in search of higher growth outside the USA and higher stock market appreciation (not investment) in the USA.   The alternatives offered in Asia up until now while higher risk offered a higher return on investment.  In the USA the higher corporate profit has been achieved by cutting R&D and employment costs to the bone. 

http://www.bloomberg.com/news/2013-06-04/cash-outflows-turn-world-s-best-stocks-to-worst-southeast-asia.html

 

For example, Indonesia, the Philippines and Thailand led a rally in non-US corporation profits as QE spill over buoyed Asian economies sent corporate profits to records because the Fed’s debt buying spurred investors to seek higher-yielding assets.  But now the threat of reduced Bernanke bond purchases by the U.S. sent stock markets in Asia from being the world’s best to among the worst.  The Federal Reserve is sending foreign investors to the exit in anticipation that new growth will return to America even as the US stock market peaks.  Yes, QE helped the US stock market but hurt US jobs because it torpedoed investment in stable low interest US corporation debt in favor of higher risk Asian debt returns.  
For example:  Impax Laboratories Inc said Wednesday that it cut about 10 percent of its workforce to boost profitability.  This works well in long recessions where the lazy are the first to go and productivity multiplies with the fear factor so production increases and it stays up.  Once a good work ethic is established the new hires bear the brunt of layoffs.  That is how Bernanke’s quantitative easing destroys risk taking in the USA and encourages US cost cutting that destroys jobs, increases fear and improves the American work ethic among those with a job, but destroys the hope of the next generation.  But Obamanomics makes the rich much richer because their wealth rises with the US stock market. That is why the gap between the wealthy and the poor is increasing under Obamanomics.  Five years of Obamanomics has been a disastrous US recession.  Getting rid of Bernanke QE will eventually be a boon to R&D and employment in the USA.  The stock market may first crash but finally American employment and manufacturing growth will resume.

 

Bloomberg reported that forty-seven percent of Americans say they don’t believe Obama is honest compared with 40 percent who say he is being truthful, according to their National Poll of 1,002 adults conducted May 31 through June 3. The Attorney General's harassment, dirty tricks, and violation of other American Constitutional rights such as privacy has been undermining confidence in America’s government with simultaneous Fast and Furious gun running to impugn innocent gun owners, IRS harassment (based on names such as patriot, Christian, and constitution), and wire tapping of what had been an American free press.  Holder and his agents need to remove themselves from office ASAP or they may drag down the administration.  He is still in contempt of Congress.  More and more democrats say Holder should leave.  Even sources in the Whitehouse are leaking rumors he will.  Today the WSJ differed with Bloomberg and said they did not trust the Obama Administration but think Obama himself might just not know what his government is doing.

 

Equity indexes in the three markets have declined more than 3.5 percent since May 22, when Fed Chairman Ben S. Bernanke said policy makers could consider reducing stimulus if the U.S. labor market improves. International money managers pulled a combined $1.6 billion from the Southeast Asian countries in that period, the most since August 2011, data compiled by Bloomberg show.

 

Thailand recorded the most withdrawals among the countries from May 22 through June 3, losing a net $769 million, according to stock exchange data compiled by Bloomberg. Photographer: Dario Pignatelli/Bloomberg

 

Investors view computer screens at the Philippines Stock Exchange in Makati City in Manila. The Philippine Stock Exchange Index has dropped 9.6 percent since May 22. Photographer: Brent Lewin/Bloomberg

 

Monday stocks and the dollar declined in volatile trading after U.S. manufacturing unexpectedly shrank in May at the fastest pace in four years to the June 2009 level, showing that slowdowns in business and government spending are holding back the American economy.

 

Tesla Motors Inc., which has almost tripled in market value this year, is the latest stock market scam as great rumors abound and knowledgeable speculators unload the stock on the unwary.  They claim it is efficient to burn hydrocarbons to make mechanical energy to convert to electricity, send it over the grid to charge batteries and then convert it back to mechanical energy in a car.  They think that is more efficient than burning hydrocarbons in a normal car to directly generate mechanical energy and cut out all the middlemen and conversion wastes plus energy distribution waste.   It is typical far left incompetence.

 

U.S. oil stockpiles rose to the highest levels in more than 80 years. 

 

World Economies

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

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

 

U.K. construction returned to growth last month and retail sales increased.

 

Japan is not a good investment for Americans because since beginning quantitative easing in 1990 they weaken their currency faster than they expanded their economy.

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

 

FTSE 100 Index is close to its upper resistance level reached previously in 2000 and 2007.

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

 

The German market is close to its upper resistance level reached previously in 2000 and 2007.

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

 

The French market indicates stagnation since year 2000.  It still is down 50% from 2008.

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

 

The Swiss market indicates stagnation since 2007.  http://finance.yahoo.com/q/bc?s=%5ESSMI+Basic+Chart&t=my

 

  The NYSE is similar to the British and Swiss and indicates stagnation since 2007 given in excess of 15% inflation since then and no similar market advance. http://finance.yahoo.com/echarts?s=%5ENYA+Interactive#symbol=^nya;range=my;compare=;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;

 

 The SandP is parabolic at old inflation adjusted resistance levels which were set in 2000 and 2007 and at this level it has not even matched inflation.  Simple mathematics says that after a 66.6% drop in value it has to go up 300% from the low to get back to breaking even.  The market (accounting for inflation) was lower in 2007 than in 2002 and is lower now in 2013 than in 2007.  And MSNBC/Pravda says we are recovering because we are at the same stock market level we had in early 2000 before the Clinton recession, the Bush election and 911.

http://www.google.com/finance?q=INDEXSP%3A.INX&ei=l_-LUejREeO_0gHwwQE

 

American Economy

Jun 3

ISM Index May 49.0 down sharply from 50.7 ---

Construction Spending Apr 0.4% small improvement from-1.7%

Jun 4

Trade Balance Apr -$40.3B even worse than before -$38.8B

 

Jun 5

MBA Mortgage Index 06/01 -11.5% worse down from -8.8% --

ADP Employment Change May 135K still much too low 119K ---

Productivity-Rev. Q1 0.5% 0.5% 0.5% 0.7% -

Unit Labor Costs Q1 -4.3% plummeting wages from 0.5%-- 

Factory Orders Apr 1.0% slight improvement from -4.9%

ISM Services May 53.7 slight expansion from 53.1+ 

Crude Inventories 06/01 -6.267M down sharply from 3.0M-- 

 

Jun 6

Challenger Job Cuts May -41.2% down from -6.0% +

Initial Claims 06/01 346K down from 354K ++

Continuing Claims 05/25 2952K down from 2986K +

Natural Gas Inventories 06/01 111 bcf up from 88 bcf  +

 

Jun 7

Nonfarm Payrolls May 175K government jobs grew again 165K -----

Nonfarm Private Payrolls May 178K still anemic private growth from 176K ---

Unemployment Rate May 7.6% got worse from 7.5% - -

Hourly Earnings May 0.0% stagnant 0.2% -

Average Workweek May 34.5 increases instead of new hiring in anticipation of new layoffs 34.4 --

Consumer Credit Apr @ 3PM

 

The Markets June 7, 2013

This market appears to be topping.   Volume on the latest advances is extremely low.  We will know when it has topped if the market fails to top the previous high. 

Almost half the gains of the rally that occurred early last year was lost by last summer.  Half the gains of this rally began last year.  Most of this rally could vanish this summer but when QE3 ends a real recovery can start and a justifiable rally perhaps could start next Christmas (if QE3) is phased out.

 

The recent Bulls- Bears indicator.  More bulls than bears means more exuberance or topping.   That is a bearish sign!

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

 

World trade has been dead for four years (flat lined).  Look at the last 5 years!  It still looks close to zero growth.

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

 

Bernanke is pushing on a string.  The FED has run out of leverage at close to 0% short term interest rates. 

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

 

The VIX behaved this way in 2006 and 2007when the bubble began to unravel but the market did not collapse until 2008.   Again look at 5 years and you see the worst is yet to come.  The VIX would normally top out above 30 before the bear market ends.

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

 

World market updates:

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

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