A consequence of the emasculation of
America
The stock market bubble and the
housing bubble are now linked and underwritten by the underwater Liar-Loans
mortgages. The FED has bundled up the
worthless Liar-Loan mortgages and is using that worthless paper to finance
QE3. Remember Liar-Loans were made to
allow people with no stable means of support to buy houses on credit by forcing
banks to accept their word that they turned their lives around and had a reliable
source of income. Banks could not
disqualify them just based on their lack of credit rating. Even
now any banks that do not issue liar loans get sued by the Attorney
General. Banks had to accept lies that
the applicants had turned their lives around.
They were often people who could not hold a steady job for more than one
or two years but they lied and said they had turned things around. And so they were able to make payments for a
few years until about the time Obama ran for office and the liar loans began to
unwind.
Those near worthless liar loan
securities are the basis and backing for the FED QE money printing
programs. That means most of that money
that has recently gone into the stock market is actually worthless and the
market and our entire economy is now one big bubble.
The FED may now even be addicted and
hooked. For a full year they have talked of going cold
turkey but then they get the economic sweats and delay the unwinding of the
addiction to quantitative easing. They
went from $600,000,000 to $1,000,000,000 per year. That is happened to the Weimar Republic
Oct 31 2013 Hillary Rodham Clinton said in her 2007
campaign for president that the next step for America (presumably after socialized
medicine) is for the government to ensure that everyone has the job of their
choice so that we can all be artists, or surf or do whatever we want to do all
our lives. She would like to guarantee
jobs in the arts and entertainment so that any American can be fulfilled in the
job of their choice and those mean spirited people who chose to work all the
time and be useful will have to share their wealth with the “beautiful people”. Karl Mark wrote his “Communist Manifesto” in
1848 and H.G. Wells understood that form of socialism. The Time Machine by H.
G. Wells, published in 1895 describes a society in the future where all the
beautiful people are supported on the surface of the earth doing anything they
like to do by what appear to be working people living in tunnels
underground. The twisted ending is that
the people living in the sun who do whatever they like are raised there like ignorant
cattle and became the food source for the worker socialist society beneath the
surface. He saw communism as a type of cannibalism
that only survives until they consume all the wealth, hopes, dreams, ambitions
and lives of the beautiful idealistic people who are oblivious to the real
world of socialism.
50% of the Pilgrims starved to death
in the first two years at Plymouth Colony until they gave up on socialism and
each person was permitted to have their own garden for food.
Americans have experimented with
socialist communes many times and one that has survived is the “Amish” who
exist still in relative poverty to this day.
They periodically have problems with their leaders often demanding the
young men allow the leaders to share their wives as well as everything else. Once in a while the young men say no and get
punished by cutting off their beards.
The East Germans were starving
already for several years before they tore down the Berlin Wall. To combat starvation the Communists allowed
East Germans to have private gardens (like victory gardens during WWII) outside
the town limits and could keep the food they grew there. Today, when the hotels and guest houses are
filled you can often find a coldwater garden house to stay in for the night.
OCT 30 2013 American businesses are forced to cope with the
burden of implementation of the onerous requirements of Obama’s Socialism with
companies like UPS voicing more concern over the cost of complying with the new
health law and with doctors leaving the profession in fear of 50 million experienced
scam artists coming in off the streets with ambulance chasing lawyers to sue
them and hospitals in phony mal practice suits.
Costs will rise as doctors and hospitals lawyer up in defense. It is a new welfare program for poor Asian
students flooding American medical schools to become the next generation of
doctors paid for by taxpayers to be whatever they would like to be with grants
to be arts and explore their potential.
UPS will cut expenses by dropping
coverage for spouses of non-union employees who are considered of no value to
socialist politicians who depend on union and welfare votes, indicated that the
costs of transitioning to compliant insurance will total $100 million in
expenses next year. While historically
unions always have supported socialism when it started their activists
eventually also were sent to the Gulag to stop their demands when there was no
more wealth to redistribute to their leaders.
OGX Petroleo & Gas Participacoes
SA, could file for bankruptcy protection as soon as today.
OCT 28 2013 America America Israel
puts Obama on notice they are prepared to neutralize Iran USA
http://www.independent.co.uk/news/world/americas/nsa-spying-scandal-merkel-and-hollande-demand-talks-as-us-is-accused-of-listening-in-on-phone-calls-of-35-world-leaders-8901065.html
With hyperinflation a risk, U.S.
The Obama administration’s
health-care overhaul debacle faced mounting problems Sunday the data services hub
that supplies tax information to the websites failed due to another
unanticipated unknown Verizon problem at the center that hosts it.
Oct 28, 2013 Socialists don’t practice what they
preach. First of all, few socialist
states are any more than small socialist states like Greece ,
Sweden and Portugal Great Britain Germany and
Sweden Germany United States like America United
States of America United States USA
The only unions of states that have
had Obama’s socialist type medicine are China
and the now dead USSR USA China and
the now dead United
Soviet Socialist
Republic
More Americans than forecast filed applications for
unemployment benefits last week.
http://www.bloomberg.com/news/2013-10-24/more-americans-than-forecast-filed-jobless-claims-last-week.html
It is time for President Barack Hussein Obama to fire his
Secretary of Socialized Medicine… Kathleen Sebelius who has stonewalled Congress
and the American people long enough. She
has even refused repeated requests for information on implementation of the
health socialization law and ignored invitations to testify by Congress to
explain the gross incompetence demonstrated by her department.
World Economies Nov 1, 2013
AT&T hits hurdles expanding in the world because NSA
uses them to illegally spy on people.
https://www.eff.org/nsa-spying/faq
The Obama Treasury Department complained Thursday that in
2012, Germany ’s nominal
current-account surplus was larger than that of China
In the last quarter Taiwan
In the 1970’s government treasuries sold off their gold
holdings. But in the early 1980’s when
gold rose 1500% government treasuries increased their gold holdings. Then as gold dropped 60% to $300/oz as the
year 2000 approached government treasuries sold off their gold holdings again.
Finally as gold hit $1800 in 2012 government treasuries were filled again with
gold holdings. Now that gold has dropped
30% government treasuries have decided to sell off their gold holdings
again. Now then is the obvious time to
buy gold because governments never seem to get it right.
The central bank of China
has reduced funding of the banking system since driving the benchmark seven-day
repurchase rate to 4.88 percent as China
Euro-area jobless numbers this week lays bare with the
scourge of political quagmire destroying the economy in Italy Italy ’s
level more than double Germany
The German market is
about 7% above the 2007 high which was about 7% above the 2000 high. It failed to break out from its upper
resistance level defined by 2000 and 2007.
http://in.finance.yahoo.com/q/bc?s=%5EGDAXI&t=my&l=on&z=l&q=l&c=
The French market has
continued to decline since year 2000. At
it most recent highs it is still is still down 50% from 2008 and down 60% from
2000.
The Swiss market indicates stagnation since 2007.
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. The NYSE index is too
big to manipulate legally. It has 300 stocks just starting with the letter A.
American Economy
Oct 28
Industrial Production Sep 0.6% slight improvement 0.4% ++
Capacity Utilization Sep 78.3% still full 77.8%
Pending Home Sales Sep -5.6% -sharply lower at -1.6% ----
Oct 29
Retail Sales Sep -0.1% down sharply from auto decline 0.2%
---
Retail Sales ex-auto Sep 0.4% up from 0.1% +
PPI Sep -0.1% down from 0.3% --
Core PPI Sep 0.1% flat 0.0% --
Case-Shiller 20-city Index Aug 12.8% slight improvement
12.0% ++
Business Inventories Aug 0.3% still increasing 0.4% --
Consumer Confidence Oct 71.2 plummeted from 79.7 ---
Oct 30
MBA Mortgage Index 10/26 6.4% improved from -0.6% ++
ADP Employment Change Oct 130K terrible, terrible 166K----
CPI Sep 0.2% ok 0.1%
Core CPI Sep 0.1% low 0.1%
Oct 31
Initial Claims 10/26 340K down from 350K +++
Continuing Claims 10/19 2881K up from 2874K---
Chicago PMI Oct 52.0
sharply lower 55.7 ---
Nov 01
ISM Index Oct 54.5
down from 56.2 ---
The Markets Nov 1, 2013
If the American Congress does not stop Obama’s socialized
medicine
The WSJ warned Wednesday that the Emerging markets are
running out of steam and will bear the brunt of the coming recession as
interest rates rise.
Stock market volume (investor participation) has dropped continuously
by 40% since Obama was elected in November 2007. Americans have not yet recovered what they
lost since the day he won. The hedge
funds have been beaten up and averaged about 7% gain/yr even with the stock
market back up about to the level before Obama won the election in 2007. Even the NYSE is approaching the high it hit
before Obama won. Yet enormous wealth has been lost and our
college graduates since Obama have become a lost generation. The socialists are printing money at a rate
of $1.02 Trillion per year and what they are doing has never worked in any
country in the last 300 years. It was
last done the homicidal maniac Robert Mugabe in Zimbabwe Germany
But with Obama starting hyperinflation of the worlds American
currency base Obama now threatens the entire world with a worldwide Great
Depression starting within three years.
The trick is what can we do now to survive? Unfortunately past experience says we had
better find a small free enterprise agricultural country where we will not be
slaughtered or starved. Many people are
starting to plan for that. The better
solution is to sweep this socialist government entirely out ASAP and claw back
all the wealth they are stealing. We
need a re-incarnated Ronald Regan or Dwight D Eisenhower.
Quantitative easing is used to hide the cost of increasing
national debt and has the effect of inflating the world money supply much as
the Weimar Republic America
enjoyed the Roaring Twenties then and Germany
Gold prices seem to have bottomed and now are advancing in New York as Federal Reserve quantitative easing and China and Japan
Market rotation continues as QE floods America
Once the FED loses control of interest rates people now
predict the cost of just Obama’s existing squandered debt will drive QE to over
$1Trillion per month. This could happen
before Socialized Medicine bugs are worked out and could be the excuse used to
abandon Obama’s Socialized Medicine.
The economy and the stock market always eventually
disintegrate together under socialism.
The more socialism grows the more the economy shrinks. That is the historical repeatable fact with
no exceptions to the rule thus far.
Markets can remain
irrational longer than you can remain solvent –John Maynard Keynes
If you look at these next two plots it says this bull market
is over because prices are about 50% higher than the historical average and the
dividends are very low.
http://www.martincapital.com/index.php?page=graph&view=div_earns_payout
World trade started to grow as China
http://www.bloomberg.com/quote/BDIY:IND
The VIX indicates some market concern now at 20. The VIX
would normally top out above 30 or even 70 before the bear market ends. Investors are now as complacent as they were
in 2007 at the peak.
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=asia
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