August 22, 2015 If you have read this blog over the last few years you know we use cash flow not price to monitor the market. We called the coming end of the bull market in October of 2014 with its earliest likely appearance being January of 2015, the most probable beginning of the Bear occurring around August 2015, and with Jim Crammer folding and yelling sell-sell-sell by the end of October 2015. We have predicted there will be a 60% to 90% decline in the NYSE index during this bear market that apparently just started this week. Earlier this week we reported that investors were suddenly being mentally conditioned to buy into an imminent bear market because after big early day corrections the bears were allowing the markets to recover so that the average investor would be conditioned to buy into the bear market so the bears could make a bigger killing. We know people from China and other countries have been monitoring this blog because they sometimes have sent questions. We know the corrupt Obama administration monitored this blog and had the IRS harass us just as they harassed thousands of churches, historical societies and others that they could not influence.

            China in 2015 is Japan in 1989.   Cultural socialism and a paternalistic near-sighted government are their common weaknesses.  China and Japan go by the book but books are past wisdom and innovation needs vision.  We believe we have seen the end to China’s spectacular western style industrialization.   Further Western type innovation will require free-enterprise thinking that is out of the sanctioned socialist thinking box.   Socialism is based on copying the technology created by free-enterprise.  At best they usually can only stay 30 to 50 years behind America.

              The death knell for China’s economy was when they were small minded and took away Hong Kong’s democracy.   Paternalistic socialist societies are excellent at cheating and copying.  That is why so many score so high on tests.   Many Americans have witnessed that at universities. Since 1990 (25 years) Japan’s economy and stock market has gone nowhere.   Now China will retrench like Japan because free enterprise requires innovation not copying other people or pirating patents and ideas.  During WWII America allowed Japan to steal naval plans that were doctored so when Japan blindly copied them the centers of gravity of their ships were too high so the ships capsized in storms.  It worked!  They copied the ship plans without thinking!

            If America continues with “stupid party” socialist, the USA will go down the tubes to socialist stagnation along with Japan, Russia, S, Korea, China and most of the world. 

            Since God’s CEO gifts to America sought to repress the Second Amendment, freedom of religion, to try to force churches have to serve NAMBLA needs or lose their US Constitutional protections, their corporation stocks have not been doing very well.

Twitter and Yelp stock are down over 50%

Apple and Gap stock are down over 25%

Walmart and Gap stock are down over15%