Mar 21 The outlook for Russia’s BBB credit rating, the second-lowest investment grade, was cut to negative from stable by Standard & Poor’s, which said the economy is threatened by Western sanctions over its invasion and annexation of Ukraine’s Crimea region. The heightened geopolitical risk and the prospect of U.S. and EU economic sanctions following Russia’s invasion of Crimea could reduce the flow of potential investment, trigger rising capital outflows, and further weaken Russia’s already deteriorating economic performance.

While Obama is as weak as Jimmy Carter was, Jimmy was a decent man and did not sic a secret political police on Americans.  With such a weak American president Israel might now feel emboldened and decide to go in and take out Iran’s nuclear aspiring religious dictatorship and set the Iranian people free.  Obama has had the effect of emboldening and destabilizing the Islamic and communist enclaves. 

 

Mar 20   Russia will likely be suspended and the G8 will go back to being the G7.  If China refrains from territorial grabs, China will likely be part of the next G8 not Russia. The smart thing for Yellen to do to stimulate the economy is to start to gradually raise interest rates now, not next year.  That would cause house hunters and businessmen to rush to get invested before mortgage and business loan interest rates rise.  The bank prime interest rate should be raised a few hundredths each month but at a progressively faster rate that gets it to 4% in two years.  Then banks and businesses would see that they had better make adjustments.  People will project that they need to refinance and to buy real estate before it is too late.  That would kick-start the American economy.  Once it gets going in a year then hold the rates flat as long as possible before inflation kicks in.

 

Wake up America! Fast& Furious gun running, IRS harassment of patriots and tea party, NSA tapping our phones and emails, the administration’s abandonment of Benghazi, and Obamascare are true scandals.

https://www.youtube.com/embed/osYZ1uZasN8

 

These three, short sentences tell you a lot about the direction of our current socialist government and its cultural environment.  They reward those who want to take what Americans have earned and punish people who love and protect America

 1. We are advised to NOT judge any savage Sharia law Muslims by the actions of all their lunatics rampaging the world, but we are encouraged to judge ALL gun owners by the actions of a few lunatics.

2. Seems we constantly hear about how Social Security is going to run out of money, but we never hear about welfare or food stamps running out of money.

 What's interesting is the first group "worked for" their money, but the second didn't.

 3. Why are we cutting benefits for our veterans, no pay raises for our military and cutting our army to a level lower than before WWII’ Pearl Harbor, but we are not stopping the payments to illegal aliens.   This is what illegals receive monthly-- $1500.00 per child, $500 for housing, Food Stamps, Free education including college and the right to vote.

 

Mar 19  The New York Stock Exchange market daily volume for the recent two day rally was 10% below the volume during the previous week’s decline.  It is only half the volume of the market prior to the candidacy of Obama.  The equities markets have contracted every year of his administration, not just during the market declines but also when the market rose as well.  It is as though the entire public is afraid to invest while Obama is in office and the entire market is based on quantitative easing and the inflation of market price simply because more federal cash is chasing the same stocks.  It is a very bad sign that the two day rally has occurred during a contraction in market cash flow.  It means the funds are fixing the prices and there no longer is a free market at these prices.   

 

Last year Obama said 40 million people in America living in poverty were unable to get any medical care.  Then they inflated the figure to 50 million neglected poor people.  Yet, so far after three years of propaganda and three months of open enrolment the total of everyone who has attempted to sign up for free socialized medicine is less than 4.5 million.  What happened to the other 45.5 to 50 million missing people Obama said are living desperately in American poverty who Obama apparently was told came out and voted for him because of socialized medicine?  Do we have a problem with too many people in American cemeteries that faithfully vote for socialist like Obama but do not get adequate American health care?  What does that say about the possibility of voter fraud and healthcare fraud if 45.5 million people who did not sign up for free healthcare were still able did get out and vote for Obama?  Shouldn’t some of the 45.5 million possible dead Obama voters be asked to prove their identity before they are allowed to vote next time?  Wouldn’t a photo ID for every American voter be a good idea? 

 

Socialist societies are basically slave societies with very little freedom.  This is the first time in 4000 years that most men and women in China have personally seen the benefits of free enterprise, although still few yet have and use this freedom.  China should be allowed to replace Russia in the Group of Eight (G8), the forum for the governments of a group of eight first tier and second tier industrialized countries.  Russia has fallen behind China now and has become too temperamental under Democrat Socialist Putin, to continue to work with civilized countries.

 

Norway, Sweden, and Denmark were the hub of the Viking culture.  The Russ were the first Russians and they were actually the Swedish people who sailed their boats up into the mountains in Europe, then dragged their boats to the other side and then sailed down the rivers to the black sea to trade.  They were blond and they mingled with the Slavic peoples of what are now Eastern Europe and the Ukraine.  The Ukraine was then part of the domain of the Swedish King.  

Modern Russia is where the Mongolian Golden Hordes of Batu Kahn settled when the barbarians were stopped in Eastern Europe and were slowly driven back.  The Mongolian traits are evident in Putin and the people of Peter the Great’s Russia.  Peter the Great of Russia defeated the Swedish army in the Ukraine and was the first to make the Ukraine part of Russia.  But later the Ukraine broke free and was part of Slovakia which extended then from what is today the Czech Republic all the way to what is today Russia.  If it were not for Stalin’s invasion the Ukraine would likely be as wealthy as France today.  Of course that would also be true of most of Eastern Europe.

 

Stalin invaded the Ukraine, Crimea, and a few others countries before Stalin and Hitler were at first allies and made their secret non-aggression pact to divide Eastern Europe between the USSR and Nazi Germany.  They planned to attack Poland from both sides and annihilate the Polish army in a few weeks.  But Stalin delayed his half of their combined invasion of Poland by two weeks and Hitler was furious because Hitler lost many soldiers invading from the west and Stalin just marched in unopposed from the east.  That is why Hitler then threw away their treaty and made the big mistake of opening another war front with Russia.

http://history1900s.about.com/od/worldwarii/a/nonaggression.htm

http://en.wikipedia.org/wiki/Molotov%E2%80%93Ribbentrop_Pact

http://www.history.com/topics/world-war-ii/german-soviet-nonaggression-pact

 

The Nazi and Communist governments both where socialist dictatorships with only one political party allowed to rule.  One had the Nationalist Socialist Party (NAZI) party and the other the International Socialist Communist Party.  All socialists who have any brain at all know both dictatorships were socialist countries.  The Italian fascists were a socialist dictatorship as well.  Dictatorships are tyrannies of the majority with no operable constitutional protections, just great freedoms on paper. Unfortunately, few American socialists have the brains to know or the courage to admit the Nazi, fascist, and Communist systems were cradle to grave governments that spied on and tortured and killed any who believed in human freedoms or free enterprise.   They all used slave labor and slaughtered their minorities, the disabled, and their poor.   No American with knowledge and a drop of intelligence would propose socialist redistribution of income.  Even the Red Chinese have become educated and smart enough to use free enterprise incentives to grow more in the last 20 years than they grew in the last 200 years.  That is why the Obama Administration is so disappointing with their failed and stupid banana republic socialist plans.  If Mitt Romney had won, America would be growing again without a “Big Brother” government spying on and harassing all Americans who have criticized their moronic failed policies that Hitler and Stalin and Mao demonstrated do and cannot ever work.  They last until they exhaust all their previous work ethic and wealth.

  

World Economies

Mar 21 Freedom from Russian domination sidelines climate concerns.  EU leaders ask the European Commission executive, to determine within three months ways to diversify energy sources away from Russia -- the main supplier of clean gas and dirty oil to Europe through Ukrainian pipelines.  Leaders of the 28-nation EU delay a decision on carbon-reduction targets at the EU meeting in Brussels.

Mar 20   The thought that a recession in China would not cause a short contraction (negative growth rate) is about as absurd as it can get.  The USA had small depressions almost every 40 years since it was founded including two before 1816.  China has a mess of bad debt and needs to take small bites now or eventually face a depression.

 

Russia will likely be suspended and the G8 will go back to being the G7.  If China refrains from territorial grabs, China will likely be part of the next G8 not Russia.

Mar 18 China announced that the kiwi will become the fourth currency to be convertible into yuan, joining the Australian dollar, the Japanese yen and the U.S. dollar.  China is trying to raise and stabilize the value of the yuan to allow it to import resources more cheaply not because they want more imports of finished products.  China should replace Russia in the G8.

Country Rank GDP $Billion

 World 83,193

1  United States 16,244

2  China 12,261

3  India 4,716

4  Japan 4,576

5  Germany 3,167

6  Russia 2,486

7  Brazil 2,330

8  United Kingdom 2,313

9  France 2,238

 

Mar 17 The Euro zone inflation drops back to recession concern and rate-cut level dropping to 0.7%.

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.

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

 

Japan’s stock market appears to have topped and begun a new decline. It has declined since 1990 when it began Quantitative Easing.

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

 

The Swiss market still indicates stagnation since 2007. It has hit the highs of 2003 but could not make it to the highs of 2003. Obama has destroyed Swiss banking by attacking Swiss confidentiality that had protected people from the Hitlers and Stalins of the past. The Obama socialists are trying to legally confiscate everything people earn while lining the pockets of their friends with Ambassadorships and $billions in contracts for inept management of socialized medicine.  Look for world economies to soar when the socialists are no longer running America.

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

 

American Economy

Mar 17

Empire Manufacturing Mar 5.6 recovered slightly from last months decline level 4.5 +

Industrial Production Feb 0.6% recovered a bit from -0.2% ++

Capacity Utilization Feb 78.8% up from 78.5% +

NAHB Housing Market Index Mar 47 flat from 46  +

Mar 18

Housing Starts Feb 907K down from 909K --

Building Permits Feb 1018K up from 945K ++

CPI Feb 0.1% flat  at 1.2% per year 0.1% stagnation Japan style! --

Core CPI Feb 0.1% stagnation Japan style 0.1% --

Net Long-Term TIC Flows Jan $7.3B people are paying taxes now -$45.9B 

Mar 19

MBA Mortgage Index 03/15 -1.2% still declining -2.1% --

Current Account Balance Q4 -$81.1B still very bad -$94.8B --

Mar 20

FOMC Rate Decision Mar 0.25% no change 0.25% -

Initial Claims 03/15 320K worse than 315K -

Continuing Claims 03/08 2889K worse 2848K --

Existing Home Sales Feb 4.60M down from 4.62M -

Philadelphia Fed Mar 9.0 improved from -6.3 +

Leading Indicators Feb 0.5% phony they lowered last month to 0.1%  from 0.3%,  It should be flat at 0.3% not improved.  The Obama administration is transparently stupid, and it cowardly attacks and harasses good Americans.

 

The Markets

Mar 21 New York State has had some success stimulating new development upstate.  Also non-residential construction has had some recent growth in what 100 years ago had been the center of the world power generation development.  Nano technology is the main focus now.

  

Mar 20  At all past market highs the balance sheets were filled with losses which were hidden by falsely but legally quoting assets and acquisitions at cost not at true value, and by capitalizing losses and by making off balance sheet corporate entities to hide corporate debt.  Even Greece went nearly bankrupted by keeping debt off the books until they could no longer afford the interest payments on the debt.  It is easy to get away with this type of corporate fraud today because the CEO’s hope to take the golden parachute and retire before interest rates rise and the fraud they are perpetrating on the shareholders becomes obvious.   Look at the GM accident fraud they have covered up that we just discovered caused the deaths of over 100 people while Obama touted them as a success.  The reason they always seem to get away with this fraud at market peaks is because the fraud is so widespread they claim the problem is systemic not just outright fraud.  Goldman Sacks was a case in point when it was selling junk to clients and buying insurance bets against their clients.  The entire Solar array industry today will be one of the biggest black holes of fraud when its market collapses.  The crap they are selling will not last ten years.  The propane energy alternative is another rip-off and there will be a backlash coming there.  When the corrupt socialist leaning Congress is cleaned up, then we will get back to American prosperity and boot out the corrupt government officials and the corrupt businessmen that are hollowing out our industrial capacity.

 

Mar 18 Kudlow reported that the Obama’s employment data for the last six months was falsified.  There were 100,000 jobs lost not 900,000 jobs gained.  That was because the number of hours worked each week fell to 34.2 hrs per week.  Today MSNBC further announced the jobs went down even more than that because Obama counted two part-time jobs for one person as two jobs for two people.  Putin has been giving Oboma advice on how communists hide the fact that socialism is a job destroyer.

Mar 17

While the next correction probably will be large, the good news is that it is beginning to look like socialists in Congress may become extinct soon and socialized medicine will likely be scrapped.  If that is the case, then once again it will be good time to buy on the dip.

 

World bulk trade is still an Obama socialist economic poverty redistribution disaster. 

Look at the last 1+ years! Use the graph or snapshot option. Unfortunately they do not show back to 2008 when trade was five times higher than the Obama administration’s all time best world trade highs and 90% higher than today.

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

 

The volatility index is down because options traders have multiplied and they jump in when volatility is high.  Two years ago options trading profits exceeded stock profits.

Look at the volatility index and you see that the market could fall much faster. This is not a good moment in time for holding equities other than depressed commodities.

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