Monday, June 2, 2014

June 6 All companies are forced to raise money for their socialist government and to pay enormous campaign contributions and other bribes to the socialist politicians. Look how fast Russia, the Ukraine and the Asian socialists corrupted their countries and ruined their economies. Companies do not pay taxes, they only collect taxes in the form of higher prices and lower wages and pass that money along to their socialist governments and corrupt politicians. Corporate taxes force American companies to keep profits over seas where they finance American competitors not American’s corporations.

With corporate pharmaceutical companies pursuing buy out deals like never before, a drug maker’s best defense against becoming a target is to get into the zombie hunt themselves.  This is why the Obama government policy of flooding America with cash is like an injection of heroine.  Socialist government interference prevents the business cycle of expansion to die a natural death and to be reconstituted as a field rich in entrepreneurs and ideas to support the next period of business regeneration with new ideas.  Instead the policies of liberal socialists like Obama lead to a generation of the walking dead, the growth of huge monopolies that go around like flesh eating zombies and grow by consuming smaller competitive companies, destroying jobs, destroying competition, destroying the economy and infrastructure, and leading to self destruction like a drug addict on heroin.  Obama-Dodd-Frank liar loans allowed the criminals who invented liar loans to allow the poor to buy houses they could not afford.  Obama’s socialism allowed Goldman Sacks to monetize the Liar Loan derivatives in a series of tranches that even the naïve fishing villages around the world bought thinking they were sound investments.  The Obama-Dodd-Frank-Fannie and Freddie fraud perpetrated on Americans and then on the world was so obviously corrupt that Goldman Sacks and others monetized new Liar-Loan insurance derivatives to bet against their own customers who were buying their toxic Liar-loan derivatives.   In theory the poor home buyers could have flipped their houses if they got out by 2007 and the system would not have collapsed like a house of cards.  The Obama Socialists allow the criminals in banking to go free as long as they contribute $billions to the campaign’s of other socialists.  They have not prosecuted any of the corrupt bankers like they prosecuted little conservative democrat Martha Steward.
A country of socialist zombie corporations that are dependent on socialist Fed QE heroine injections just to have a pulse,  is not good situation.  Americans need to throw all the socialist bums out!

Second-ranking House Democrat Steny Hoyer boasted that Democrats in Congress will be able to keep Republicans from overturning the Obama administration’s rules to reduce greenhouse-gas emissions (i.e. human breath, CO2).  Socialists are indeed extremely stupid people and they need to be replaced by sober thoughtful people. 
 
Is it the end of the road for Target?  Once the store for liberals who pronounced the name like the French do, but some socialist liberal planted a loaded gun in to toys isle to make an anti gun statement.  That is about all that is needed to send Target to the glue factory with Sears, Radio Shack, and Best Buy.  Already their customer’s security and identity was compromised.  Now the mentally unstable socialists want to make statements at Target.
 
June 5  The EPA anticipates its new CO2 proposal would shut down or convert 30 percent of American power plants by 2030.  The EPA claims they already have the power to do that because with Obama’s pledge to veto Congress, no one can stop them except the Supreme Court.  One must remember that Obama called a “voted out” lame duck Congress back into session in 2010 to pass his socialized medicine.  And one cannot depend on the Roberts Supreme Court to do anything either.  To paraphrase Sir Winston Churchill, free enterprise brings the nations the inequality of prosperity and intelligence while socialism brings the nations the equality of poverty and ignorance.   But American’s have had it with Obama spreading his socialist equality of poverty and ignorance.  
 
As you know, Richard Nixon created the EPA because his democrat friend and adviser Daniel Patrick Moynihan incorrectly predicted the world would run out of oil by the year 2000.  Back then the UN said there was no evidence of man causing any global warming.  Instead the environmentalists all were worried about a cold planet with Nuclear Winter or running out of oil.
The EU, Russia, China, and the USA are all sliding now into a deeper recession after being the best economies of the Obama Depression.  Russia and China have again returned to aggression with Russia allowing Russians to fight in the Ukraine and China drilling for oil in Vietnamese coastal waters and sinking ships.
Drones are having an enormous effect on military spending.  Automated transportation is coming with trains that drive themselves, cars that drive themselves and soon passenger aircraft that drive themselves.  All the advances reduce good paying jobs that average people can handle
The U.S. trade deficit in April widened to its highest since July 2012 as goods imports rose to a record level. Last month's trade deficit in goods and services was $47.2 billion.
The 179,000 increase in American hiring was the smallest in four months, a sign of uneven progress in the labor market, a private report based on payrolls showed.
GM expects recall probe won't blame any of the seven friends of Obama that Obama appointed to be GM CEO’s during the period that GM worked for Obama under federal bankruptcy.  It is truly amazing that the auto defects only came to light recently when GM went private after Obama had been in charge for six years and people were dying due to the faulty key ignition switch being turned off at high speed.
 
June 3  How is it possible that the Veteran’s Administration under Obama was falsifying reports causing the lives of at least 40 veterans?  The answer is that VA whistle blowing is seriously punished if you are a doctor and point out the problems.  Some VA doctors already have difficulty finding jobs after they served their country because they were written up so many times and their records are public records.  Private hospital administrators access the records and do not hire doctors who point out problems.  While other doctors know of these problems they remain silent.  Those written-up VA doctors are among the best, but the problem is that private hospital administrators will not hire them since they have a record of speaking up when they see administration problems.   If the Obama government wants to fix the problem they need to at least purge the write-ups and that whole system and stop future write-ups of doctors and nurses who expose the a\hospital problems.  They would learn a lot about the hospital cover-ups if they interviewed those doctors.  If money is the problem it needs attention so Congress can appropriate enough to keep up with work load.  The active Army and VA hospital systems need to be merged so that work loads can be better distributed.
 
World Economy
June 6  Czech miner New World Resources Plc tumbled to a record low after Standard & Poor’s indicated it is on the verge of bankruptcy.
June 5  The International Monetary Fund urged China to refrain from rolling out more stimuli to boost economic growth and continue to implement changes to curb the dangers of high risk leveraging of shadow bank and local governments already in heavy debt,
The productivity of U.S. workers declined even more rapidly than believed in the first quarter and at the fastest pace in six years, further evidence of the economy's broad drop in efficiency gains.  U.S. productivity declined as businesses became far less efficient.
 
June 3
Gold hit near a four-month low as the dollar advance and erodes demand for alternative investments.
 
The European FTSE is at the highs of 2000 and 2007 but MSNBC/PRAVDA is still saying buy-by-by.
 
If you look at Germany where the people have perhaps the strongest work ethic in the world, their stock market has topped out too but their trend is upward only because the dollar is continually weakening.
 
The French market is about 60% of what it was fourteen years ago. 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 because their Yen is dropping faster than the dollar.
 
The Swiss market still indicates stagnation since 2007. It has hit the highs of 2003 but could not make it to the highs of 2007. Obama has destroyed Swiss banking by attacking Swiss confidentiality that had protected people from the Hitlers and Stalins of the past.
http://finance.yahoo.com/q/bc?s=%5ESSMI&t=my&l=on&z=l&q=l&c=
 
American Economy
Jun 2
ISM Index May 55.4 up slightly 54.9 ++
Construction Spending Apr 0.2% down sharply 0.6% ---
Jun 3
Factory Orders Apr - 0.6% plunged from 1.1% ---
Construction Spending Apr 0.2% continuing very low at 0.2%---
Jun 4
MBA Mortgage Index 05/31 -3.1% getting worse from -1.2% ---
ADP Employment Change May 179K new jobs falling  220K --- should be 300k normally
Trade Balance Apr -$47.2 B sharply worse from -$40.4B
Productivity-Rev. Q1 -3.2% falling fast from -1.7% ---
Unit Labor Costs Q1 5.7% rising faster 4.2% ---
ISM Services May 56.3 improved from 55.2 +
30 AM Crude Inventories 05/31 -3.431M declining rapidly 1.657M –
Jun 5
Initial Claims 05/31 312K up from 300K --
Challenger Job Cuts May 45.5% up sharply 5.7% -----
Job cuts in May rose to the highest level in more than a year, with the technology sector being hardest hit.  U.S.-based employers said they intended to cut 52,961 jobs, a 31% increase from April and the largest one-month total since February 2013.
 
Hardest hit was the technology sector,
The Markets
June 6   At some point people and corporations will hunker down.  If ATM’s stop functioning and banks close for a week or more, how should Americans be prepared?  They say we were a few days from that happening just after Obama won the 2008 election.  How much cash is needed to buy food and gas and other necessities?  Will there be hyperinflation in developing countries?  Uncertainty is growing.  Will we be  able to throw out the socialists before they destroy our economy like they did in China, the USSR and Eastern Europe from 1945 to 1989?
June 5   The QE bubble has increased asset values creating a $4Trillion bubble that with a typical bank credit multiplier of 20 has created an $80 Trillion asset price bubble mostly in the stock market.  The NASDAQ bubble has grown close to the level of the DOTCOM bubble of 2000 that burst in the last year of the Clinton Administration and caused the recession George Bush inherited.  The talk of a comeback in American manufacturing was based on manufacturing robotics during the DOTCOM bubble.  This current bubble belief of a comeback in American manufacturing is based on 3-D manufacturing printers.  Neither panned out thus far as economical except in high technology military spending. http://finance.yahoo.com/q/bc?s=%5EIXIC+Basic+Chart&t=my
 
June 3 
Stock prices are still frothy but on extremely low volume indicating that a selloff will be very steep when it finally occurs.  The numbers used to support earnings at this stage have the losses hidden until they run out of cash and sell and establish the losses and lack of liquidity in the system.  Now it is getting some attention.
http://www.bloomberg.com/news/2014-06-02/fresh-records-getting-stale-with-s-p-500-volume-at-six-year-low.html
 
World trade is now down 59% for the year to date and near a 15 year low.  It is down 83% since 2007.  Look at the last 1+ years of world trade! Use the graph or snapshot option. Unfortunately they do not show back to 2008 when world trade was more than five times higher than it is today.
 http://www.bloomberg.com/quote/BDIY:IND/chart
 Look at the volatility index and you see that the market could fall much faster. This market has little volume or volatility.  So when volume picks up past history says the market will plunge.  This is not a good moment in time for holding equities.
 
 World market updates:
http://finance.yahoo.com/intlindices?e=europe
http://finance.yahoo.com/intlindices?e=asia http://in.finance.yahoo.com/intlindices?e=asia
 
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