September 11 The short rally this past week was apparently an attempt by the hedge funds to get amateurs like Jim Cramer to persuade listeners to buy in as the hedge funds carefully controlled the advance by selling all they could while letting stocks rise and give novices hope that the bottom was real. Of course it was short lived but enough for shrewd investors to clear 3% to 5% profits... We believe the market will plummet again and what the JCs say is irrelevant. Of course we hope the FED raise rates only 0.1% because relative to the enormous debt burden 0.1% is quite large. It must be raised soon because the alternative is that we end up eventually with world hyperinflation. The plunge is already set in the cards because most good investors know it is so and therefore it will be a self fulfilling event.

        Unfortunately many investors will give up when the market is down more than 50% and that mass exodus will drive the market to a sharp pointed bottom which could be as much as 90% down from the top.  Yet if that is the case, within a year the market may easily jump 300% to 400% from the bottom as everyone who got into cash then gets back in the market.  Later the amateurs will get back in and the boom-bust cycle is repeated.

       When Hilary soon falls by the wayside it is likely the Biden will run and ask the self proclaimed Cherokee princess to be his vice presidential running mate.   He will promise to sit just one term so that the lying socialist princess impostor can then run for president.  After all she is in her mind a princess meant to rule.

            September 8   Bernie Sanders, a self proclaimed Democrat socialist presidential candidate continues to claim that the FED has floated an additional $16 Trillion to keep foreign banks afloat.  That is $16 Trillion foreign in addition to our $17 Trillion FED loan to prop up the American stock market and CEO salaries.  Oddly enough it seems to be true and had its first publicity in 2011.

http://www.sanders.senate.gov/newsroom/press-releases/the-fed-audit

       The MBA Mortgage Index 09/05 plunged -6.2% from 11.3% in August.  Usually September is one of the best housing sales months in the year.

            David Tepper, Appaloosa Mgt’s president’s big call is that money will now flow out of China and the changing money flows is driving the volatility.  He said the BRICK’s are now around the investor’s necks and the water is rising referring to all the failed investments now coming home.  He said world worth is slowing so PE ratios will drop along with earnings.    He said 20% corrections are normal not the 9% kind that panic people today.  He said he would trade the market buying after the declines.  There are times to make money and other times not to lose money and those govern the size of the investment bets (decisions).

       Like clockwork, Jim Crammer has now begun saying the market is setting its low and it is time to buy again.   We stand by our prediction that it probably will be October before JC says sell-sell-sell!

            September 8   We expect stocks to recover a little more for about a week.  But we believe the large investment firms have prepared themselves to deflate the equities markets rapidly.  That will put extreme pressure on market makers and without the past 1930’s uptick rule for executing stock shorts the market will likely plunge faster than ever since 1929.  Therefore, the market bottom could hit -90% for a short period as early as January instead of taking until April to bottom.  Most people will likely panic and institutions will take control.  The unknown is, “will the incompetent “Stupid Party” administrations that made all the ridiculous new regulations that have destabilized the markets do something even more stupid.”  Remember it was the Clinton administration that in 1998 removed all the 1929-1932 stock market safety features.  And it is the Obama administration that came up with the Dodd-Frank economic hamstring regulations.  The “Stupid Party” has put America back to 1929 when it comes to market intrinsic instability and consequent volatility.   Many investors will get back in just before the final collapse thinking they have bargains.

            September 7    China is burning through its huge stockpile of foreign exchange reserves which it made by paying low wages and restricting imports of competitive foreign products.  It is the fastest pace of currency loss in Chinese history as China seeks to prop up its currency and stem the ever rising tide of money flowing out of the country.  Foreign investors are consequently seeking to take their profits and invest in American dollars making American products more expensive and putting a world wide strain on the American economy.

            As we noted all along, an overheated market ultimately breaks when everything is overpriced and debt is leveraged to the hilt.  The stagnation of corporate growth causes growth of stocks and other collateral to decline and that causes liquidity to dry up and forces liquidations to raise more cash just as China is experiencing for the first time.  The stock market is a leading indicator for the economy because it is one form of financial liquidity that fuels growth.  The news commentators who are saying there is no cause for stocks to decline yet are so stupid because they argue that the economy is still strong.  They are stupid, stupid, stupid, because they don’t know the economy is not the leading indicator of the stock market!  The stupid CBS and MSNBC type commentators like Jim Cramer should have learned in High School that the stock market always drops before the economy declines and that is why the stock market is the best leading indicator of the economy!

            September 5    The BBC with the support of the British Government, out of both ignorance and stupidity are doing everything they possibly can to destabilize Europe and make legal citizens of emigrating terrorists.  Terrorists will no longer need to pirate aircraft to destroy infidel monuments and buildings they will have citizenship or be smuggled in to do their jobs with massive truck bombs.  Perhaps they will even blow up the Chunnel.  The BBC has taken a minor migration issue and used their massive world wide publicity network to create the greatest migration catastrophe of the human race.  Past human migrations improved the human condition.  Today we BBC ratings soar when they can show the bodies of babies washing up on the shores.  A potential ISIS holocaust is brewing in Europe while Great Britain’s BBC sponsors the problem and Britain takes very few migrants themselves.

            The BBC has fabricated an alternative reality and advertised the wonderful welfare programs and welcome the Western nations have in store for the violent, uneducated and impoverished Moslem populations.  That gives false hope for millions of people who then provide cover for thousands of terrorists who will use the cover until instructed to attack western targets.

            The BBC gives terrorists a daily review of available infiltration routes and how terrorists can avoid documentation requirements and Hungarian route check points.   Every true desperate migrant wants to get his or her legal papers so that they can become citizens.   But apparently there are thousands of ISIS and other terrorists avoiding the documentation checkpoints and they are getting away with it.

            The BBC advertises to the Islamic nations that they can practice Islamic Sharia law in European countries if they congregate in villages or apartment complexes and frighten the Christian majority away so Islamists can have privacy and cut off the hands of their thieves or execute converts as they please.  Whole areas of Paris are now off-limits to Christians, Jews, and other religious groups.  The French understand the problem but the BBC is ignorant.

            The BBC and the British government have been irresponsible and largely responsible for all the publicity terrorists cherish so much.  For their suicide killings the terrorists say they will have many brides in heaven.  Has anyone wondered why there are so many men and so few women and families migrating to the infidel, demonic Western Nations?   Why all the single men?  Perhaps they have suicide missions?  What better reason?

            It is time for Western Nations to wake up and shut down the voice of terrorism which now is the BBC.