Saturday, December 4, 2010

Weekend Open Thread...

Friday, December 3, 2010

Morning Update/ Market Thread 12/3

Good Morning,

Equity futures crept higher overnight until the release of November Employment data which missed expectations and thus caused the market to sell off. The immediate response is equities lower, bonds substantially higher, dollar lower, oil lower, and gold higher.

The headline numbers came in at 9.8% which is up from 9.6% over the past three months, while the payroll number came in at 39,000, down from 151,000 and a severe miss from expectations of 168,000. I was pointing out earlier that November was likely to be a miss due to the lack of fictional additions from their phony “Birth/Death” model.

Below is the entire November Employment Report, note the announcements regarding upcoming changes to the way this report will be calculated.:

Employment November 2010

Here’s Econospin’s summary:
Today's employment report stands out-unfortunately as a stray from the other good news this week. Payroll growth for November was unexpectedly soft and the unemployment rate rose. Payroll employment in November increased a soft 39,000, following a revised 172,000 boost in October and a 24,000 dip in September. The latest figure fell short of the median forecast for a 168,000 advance. The September and October revisions were net up 38,000. Private sector payrolls increase 50,000 in November, following a 160,000 boost the month before.

Weakness in the latest month was in goods-producing and government sector jobs. Good-producing employment declined 15,000, following a 3,000 rise in October. In the latest month, manufacturing fell 13,000; construction slipped 5,000; and mining rose 4,000.

Private service-providing gained 65,000 after a 157,000 increase in October. Within private services for November, professional & business services gained 53,000; health care rose 23,000 jobs; and leisure & hospitality increased 11,000. On the downside, retail trade fell 28,000.

Average hourly earnings were flat in November after rising 0.3 percent the prior month. The latest figure came in below the consensus projection for a 0.2 percent increase. The average workweek for all workers was unchanged at 34.3 hours, equaling expectations for 34.3 hours.

Turning to the household survey, the unemployment rate bumped up to 9.8 percent from 9.6 percent in October, topping analysts' forecast for 9.7 percent.

The latest employment situation clearly is disappointing. However, it very much is a curiosity as it is a stark contrast with the recent string of good economic news. At a minimum, there are two theories. First, businesses are still reluctant to hire despite improved demand. Second, the ADP report earlier this week showed strength in hiring by small businesses. This sector is a weak point in the government statistics for payrolls and could improve with revisions. In fact, the BLS is starting to update its establishment birth/death factors on a quarterly basis for January 2011 data for release in February.

On the news, equity futures declined notably.

From my perspective, it was last month’s report, just in front of the elections, that was the outlier. Note that we have had two full years of huge job losses in the private sector and now we are shifting to huge job losses in the public sector as huge and mounting deficits begin to strike all levels of government. Also note how once again the ADP report just flat out set expectations in the wrong direction.

The headline rates are artificially lowered by failing to recognize those who most certainly could and would work, but who are outside of their parameters. When we look at the table showing the “Alternate” Series, we can see that U-6, the measurement most closely resembling calculations of the past, seasonally unadjusted rate jumped from 15.9% to 16.3%, while the seasonally adjusted rate remained steady at 17%.

And sure enough, when we look at the Birth/Death model adjustments they were negative for the month, but not as severely as they were last year. If this correction would have been as large as last year’s, then the payroll number would have been even worse:

Next month should be a mild addition of jobs via this model, and thus we can probably expect a report that doesn’t miss as badly as this one did. When you remove the L from the BLS data, you will find that the job situation has not improved, and that there are millions who are able to work full time but are not.

Note once again that Shadow Stat’s SGS data points to 22%+ unemployment:

Factory Orders and Non-Manufacturing ISM is released at 10 Eastern this morning and will be reported inside of the daily thread.

SPX 1200 indeed acted as support yesterday. With $8 billion+ POMOs every single day in December, and now with Europe also artificially buying up bonds all over the place, the markets are enjoying a phony money lift. That lift is bleeding over to oil and is fluffing up momo bubble stocks that are overvalued to extreme levels.

From a wave perspective, we are clearly inside of wave 5 up.

Wave 5’s can either extend or truncate. If it is equal in length to wave 1, then it may reach the 1300ish level. If it equals the length of wave 3, which is unlikely, then it could reach as high as 1362ish. The McClellan Oscillator turned positive again, and many indicators have turned to buy signals. However, the divergences are huge and across all time frames up to monthly. Short term indicators are also divergent again.

When wave 5 peaks, people who view the count as bullish will see the next decline as a large wave 4, while those working bearish counts will view the A,B,C over to complete wave B, and then will call for a very large wave C decline. I believe that wave C is still coming, however remain open to the possibility that a torrent of money fleeing from worthless debt instruments forces everything else higher. The end result will be the same regardless, nothing will change until we eliminate our debt saturated condition, and that will require changing WHO controls the production of money.

Thursday, December 2, 2010

Morning Update/ Market Thread 12/2 – The Whole World in Bonds…

Good Morning,

Equity futures are below break even this morning. The dollar is higher, euro lower, bonds are slightly lower as are both oil and gold.

The Monster Employment Index dropped from 136 to 134 in November. Again, not a terribly important measurement, but it is used to set expectations for tomorrow’s BLS release.

Weekly jobless claims jumped from last week’s trumped up 407,000 to 436,000. Consensus was expecting 425,000 – here’s Econospin:
Jobless claims failed to extend their push lower in the latest data. Initial claims came in at a higher-than-expected 436,000 in the November 27 week vs a revised 410,000 in the prior week. Yet next to the 410,000, the latest total is the best of the recovery. The improvement is reflected in the four-week average which is down a convincing 5,750 to 431,000 for its best level of the recovery.

Continuing claims also ended their run of improvement, rising 53,000 in data for the November 20 week. Yet the four-week average did improve, down 29,000 to 4.289 million for its best level of the recovery. The unemployment rate for insured workers held unchanged for a third week at 3.4 percent. Those on extended benefits and those filing for emergency claims both increased.

The latest data in this series are a bit disappointing yet fall far short of reversing prior improvement. Four-week averages in this report point to gains for tomorrow's monthly employment data. Markets are showing no significant initial reaction to the results.

Actually the markets sank following this release. If you remember from last week, the actual number of claimants jumped by more than 50k yet was adjusted lower. This week the number was pushed higher by nearly the same number – I’m assuming that’s due to the holiday week, but the DOL does not state so.

Pending Home Sales data is released at 10 Eastern.

Yesterday’s 250 DOW point romp came on yet another giant gap higher, thus denying any retail investor a chance to enter. Again, this market has been taken over so thoroughly that there are very few retail investors left – or should be. Note that the rumor of the U.S. bailing out Europe came in the afternoon well after the romp had already occurred. What’s that tell you about insider knowledge? And then the rumor was denied, or was it? The last rendition I heard is that the “Fed” was going to “lend” $300 billion to the IMF (not a legal entity) so that they in turn could enslave Europe – on OUR nickel. I did hear that Congress would have to approve such funds, but don’t bet your life on it. And all I can say is that should it occur, it won’t be a bailout of the people of Europe, it will be yet another bank bailout for which they will be simultaneously enslaving us as well! THIS NONSENSE HAS TO BE STOPPED.

The media is making WikiLeak’s Assange out to be a criminal, they are doing a full court press. I note that this morning CNN has a headline that says WikiLeak’s release of bank data “Won’t wreck banks.” Just so that you’re not scared, right? But note that’s the worry, otherwise they wouldn’t be making a headline out of it! And thus they turn a whistleblower who’s not even the actual whistleblower into a criminal! The truth is that he is protecting the actual whistleblower by hiding his identity. Why does he have to hide their identity? Because whistleblowers who provide meaningful data in this society get whacked or attacked! It is our Administration and bankers who belong on the most wanted list, certainly NOT Assange. To all Americans who think you are being patriotic by bashing Assange, you are in fact on the opposite side with your "thinking" and need to really contemplate the brainwashing that’s transpiring.

And finally under pressure the “Fed” released data on the more than $9 Trillion it lent out and backstopped during this still evolving financial crisis. You knew they wouldn’t release it all, and indeed we’re now learning they didn’t:
Fed Withholds Collateral Data, Denying Taxpayers Gauge of Risk

Dec. 2 (Bloomberg) -- The Federal Reserve withheld details on individual securities pledged as collateral by recipients of $885 billion in central bank loans, denying taxpayers a measure of the risks they faced from its emergency aid.

The central bank yesterday released data on 21,000 transactions from $3.3 trillion in emergency lending to stem the financial crisis. July’s Dodd-Frank law required the Fed to disclose the names of borrowers, the size and interest rates of loans, and “information identifying the types and amounts of collateral pledged or assets transferred.”

For three of the Fed’s six emergency facilities, the central bank released information on groups of collateral it accepted by asset type and rating, without specifying individual securities. Among them was the Primary Dealer Credit Facility, created in March 2008 to provide loans to brokers as Bear Stearns Cos. collapsed.

“This is a half-step,” said former Atlanta Fed research director Robert Eisenbeis, chief monetary economist at Cumberland Advisors Inc. in Sarasota, Florida. “If you were going to audit the facilities, then would this enable you to do an audit? The answer is ‘No,’ you would have to go in and look at the individual amounts of collateral and how it was broken down to do that. And that is the spirit of what the requirements were in Dodd-Frank.”

Fed spokeswoman Susan Stawick in Washington declined to comment.

Public Disclosure
The public disclosure of the lending data should have been prevented because it could spur runs on the banks listed, said Darrell Duffie, a finance professor at Stanford University.

“That’s a very destructive process,” he said. Still, with the data released, “if you’re justified in getting the information, then you’re justified to get enough information to judge the risk the Fed took,” he said.

It is “specifically impossible” to know how much risk taxpayers were taking by looking at pools of collateral grouped by asset class and rating, said Sylvain Raynes, a principal at R&R Consulting in New York and co-author of “Elements of Structured Finance,” published in May by Oxford University Press.

“I need to know the individual composition because a $2 billion pool can be one asset of $2 billion, which would be very risky, or 2,000 assets of $1 million each, and that’s not risky at all,” Raynes said. “The spirit of Dodd-Frank was not respected, and they used the vagueness in the wording of the law to weasel out of fulfilling their duty to the American people.”

What bullshit! How long are the people going to stand for this? You go to the airport and you let them grope you? You apply for a loan and they will demand to see every last aspect of your personal finances, yet when they STEAL money from you, you are not allowed to see jack. That’s because the “FED” is an illegal enterprise who never should have been given the power to create money – its WAY past time to take that power back and to imprison those who would get in the way of that occurring.

And now we’re learning that the central banks are going to have their first European Union joint bond offering! Again, this is probably not legal, but here’s the article:
Europe bailout fund to issue bonds

EFSF BONDS: EUROPE’S BAILOUT fund will issue € 5 billion-€ 8 billion of bonds next month, in what will be the first ever debt offering by the euro zone as a single entity.

The European Financial Stability Facility (EFSF) will use the triple-A rated debt to help fund its part of the € 85 billion Irish rescue.

Klaus Regling, the head of the facility, said in Singapore yesterday most investors would come from Europe, but there had been strong interest from Asia and the Middle East, where the offering would be a “new way to diversify for investors who are looking for high-quality triple-A assets”.

The bond is likely to be priced at a higher interest rate than similarly rated debt from Germany and France. The news came as prospects of the European Central Bank increasing its purchases of bonds led to market interest rates falling for the so-called peripheral euro zone countries such as Spain, Italy and Ireland.

RIIIIGGGHHT! Give me a BREAK! Triple-A rated? What a joke! “Testing demand,” again, what a joke! We know where the “demand” will come from… it will come from the same asshat bankers who simply make up the money from nothing and again indebt the people who will have to slave their lives away to pay it! What a con, the greatest con in the history of the planet by far.

SPX 1200 will now act as support and it appears that we have a wave 5 underway. This wave will be based on nothing but phony money, while real people with what little money they have left continue to withdraw their money from the markets, now into our 31st week of continuous mutual fund outflows. Wave 5’s are notoriously difficult to play – sometimes they truncate, sometimes they extend. They are the distribution wave, the wave that causes people to capitulate just in time for the real reversal to finally come. Front running, as I’ve repeatedly said, is a fool’s game – as is this entire market at this juncture in history.

Fool’s Overture: Roger Hodgson

Wednesday, December 1, 2010

Morning Update/ Market Thread 12/1

Good Morning,

Another day, another HUGE gap, this time it’s up. Everyday now begins with a gap, a sign of a sick and broken market which is a reflection of a sick and broken monetary system. But hey, Santa must be coming to town and it’s time to rally even if Santa is sky high living on crack. The dollar is down, the euro is up, bonds are down significantly (rates higher), oil is zooming again ($85+), gold is higher, and most food grains are higher too.

The market is pushing on SPX 1200 again, if it breaks and we run higher, it could signify the beginning of wave 5 up. The RUT is already challenging its recent high.

The still worthless MBA Purchase Applications Index supposedly moved 1.1% higher in the past week, however, refinancings fell hard, down 21.6% (in one week?) to bring the overall index down 16.5%. Here’s Econoday:
Prospective home buyers are applying for mortgages, at least they have been for the last couple of weeks. The purchase application index rose 1.1 percent in the November 26 week, adding to and confirming the prior week's double-digit gain and making a new post-stimulus high. Low home prices and low mortgage rates are stimulating demand.

Yet rates aren't as low as they were, rising six basis points in the week to an average 4.56 percent for 30-year loans. The 30-year rate was below 4.30 percent only three weeks ago. The rise has been cutting into refinancing applications which fell 21.6 percent in the week for the third decline in a row. Watch for anecdotal comments on the housing sector in this afternoon's Beige Book.

Nothing but contradictory drivel – the MBA won’t show us absolute figures, their goal is marketing, not economic reporting.

The Challenger Job Cut Report which tracks announced mass layoffs rose sharply in November, up 28.2%, rising from 37,986 to 48,711 – ho, ho, ho, Merry…

But not to worry, the bulls are getting behind another worthless report, this one from ADP whose estimate of job growth more than doubled from last month’s 43,000 (revised all the way to 82,000), coming in at 93,000 supposed new private jobs for November. Of course despite their track record for never aligning with the BLS, they do set expectations among the non-thinking crowd. Keep in mind that Friday’s Employment Report is going to be negatively affected by seasonal corrections to their Birth/Death model, as November is one of only two months that the BLS subtracts jobs out with this ridiculous adjustment. If nothing else, they seem to be consistent with their months when looking at one year to the next. Bottom line – do not expect a strongly positive report due to this adjustment which will likely be negative:

Nonfarm Productivity and Labor costs were released this morning, the headline number rose from 1.9% to 2.3%, but that is a miss on expectations of a 2.4% productivity rise - here’s Econopray:
Companies are still squeezing out as much output as possible from the current workforce instead of adding to payrolls as productivity for the third quarter got a boost. Nonfarm business productivity for the third quarter was revised up to a 2.3 percent gain from the initial estimate of 1.9 percent. Analysts had forecast a 2.4 percent increase in productivity. Growth in unit labor costs for the third quarter was unrevised compared to the original estimate of an annualized 0.1 percent decline. The market median forecast called for an incremental upward revision to no change. Productivity is up from a minus 1.8 figure for the second quarter while unit labor costs improved from a 4.9 percent spike the prior period.

Productivity is up largely due to a 3.7 percent rebound in nonfarm business output after a 1.6 percent rise in the second quarter. Also, hours worked eased to a 1.4 percent increase from 3.5 percent in the second quarter. Compensation rose an annualized 2.2 percent after a 2.9 percent boost the quarter before.

Year-on-year, productivity was up 2.5 percent in the third quarter-down from 3.7 percent in the second quarter. Year-ago unit labor costs moved up to an annualized minus 1.1 percent from minus 1.9 percent in the second quarter.

It's the best of both worlds for profits-productivity is up and costs nudged down. But for the unemployed, the trend means slow hiring. There was little market reaction on the news.

First note that this report does not square with the ADP jobs added report… this report indicates a decrease in work hours which means fewer workers not more. This report is just another deeply flawed report – it too is influenced by the value of a dollar, as goods sold can rise in price and if true inflation is not adjusted (it’s not) then this figure becomes meaningless. Actually it becomes more of a gauge showing the DIFFERENCE between reported inflation and REAL (real) inflation… if you follow that. In other words, if sales measured in dollars increase, but I don’t actually sell more items, then productivity is artificially raised and didn’t really happen. Am I right? What’s gold doing?

The Manufacturing ISM and Construction Spending are released at 10 Eastern – these will be reported in the daily thread.

Yesterday the VIX closed above the upper Bollinger band thus setting up a market buy signal:

Today it is obviously going to close back inside the range, thus we have a buy signal on today’s close. It could be announcing wave 5 up which would coincide with a positive time of year. December typically is low volume, and with a POMO every single day, I’m sure we can look forward to $100 a barrel oil by Christmas and Netflix at $500 a share. Ho, ho, ho…

Tuesday, November 30, 2010

Morning Update/ Market Thread 11/30 – Up is Down and Everyone’s a TERRORIST!

Good Morning,

Equity futures are down sharply, erasing all of yesterday afternoon’s false straight up POMO induced short covering romp. Oil is down this morning after zooming on yesterday’s huge POMO infusion, yet gold continues to soar. The dollar continues to rocket as the euro gets slaughtered:

Bonds here are higher while spreads across Europe blow wider. Obviously this isn’t going to stop until all of Europe is bailed out… and how’s that going to happen? In the end countries are left with DEBT that cannot be repaid. Anyone who thinks that Ireland is EVER going to repay this “rescue” is simply insane – it can’t happen. Yet the central banks don’t care - they can create the money from nothing time and again – it’s not about money, it’s about CONTROL. But in their fervent and feverish desire to have control, the banks are losing control, the people of the world ARE going to toss them and their debt aside, there is no other outcome that’s mathematically possible.

I’m sure that just having that ‘T’ word on the headline will get me on 10 more watch lists… We have Congressmen branding WikiLeaks’ Assange a “terrorist” in addition to Hillary Clinton and the rest of the Administration brandishing HIM a criminal for exposing THEIR criminal acts (UN seeks answers from Washington). Next Assange says he has information regarding one of America’s big banks, and now we also have Actor Mark Ruffalo placed on terror watch list for supporting a documentary about gas drilling.

Current developments are disturbing to say the least - there is no doubt that the real terrorists reside at the central banks. Those terrorists and those who support them should think long and hard about their standing once the people rise up, and they will, it is only a matter of when.

Meanwhile the markets continue to be a complete and total joke – a façade. Netflix at $200 a share! Give me a break. Yesterday we just pumped $9 billion more into the markets via two POMOs, and one has to wonder when it becomes 3, then 4, then you might as well just run a constant hose straight into the market. Yesterday the “Fed” cited weakness in just 3 companies as justification for pumping an additional $600 billion into the world! LOL, well, I’m a little short, perhaps the “Fed” should consider another $trillion or ten?
Need for QE2 Seen in Pausing Electronics Manufacturing Services

Nov. 30 (Bloomberg) -- In the week before the Federal Reserve announced its $600 billion program to help spur the U.S. recovery, three makers of electronic equipment for companies such as Cisco Systems Inc. announced that demand for their products was weakening.

“Our customer forecasts are more uncertain,” Jure Sola, chief executive officer of San Jose, California-based Sanmina- SCI Corp., said on a Nov. 1 conference call. Some clients “have a lot of inventory in the pipeline” and “are worried about the economy.”

Policy makers led by Chairman Ben S. Bernanke cited the deceleration in business spending on equipment and software when they announced Nov. 3 that the Fed would purchase Treasuries in a second round of quantitative easing to prevent inflation from falling further and help bring down unemployment, which has remained above 9 percent since May 2009.

Sweet, sweet POMO… While the central banks suckle the sugar, our real economy rots in the decay. The world became saturated with debt, they lowered interest rates to nothing (except for real people), then they pumped money from nothing, and now governments and people are even more saturated because it’s all the SAME PEOPLE who are responsible for all of it. More debt doesn’t make the problem go away – DUH. So what comes next? That would be the “other” events. You know, ignoring the Constitution, ignoring the rule of law, currency wars, trade wars, real shooting wars, labeling everyone a terrorist – that type of stuff. And there’s plenty more to come… plenty.

Yesterday Simon Black wrote a very provoking piece that was posted on ZeroHedge:
Simon Black Advocates Leaving America As The "Most Effective" Way To Fight The Battle With "The Mob-Installed Government Beast"

Simon Black, better known as Sovereign Man, presents some disturbing thoughts which are sure to get the broader spirits elevated. Instead of continuing to fight what some see as a losing ideological battle with a government which no longer even remotely represents the broader population's interests, Black says simply to walk away: "When you think about it, what we call a 'country' is nothing more than a large concentration of people who share common values. Over time, those values adjust and evolve. Today, cultures in many countries value things like fake security, subordination, and ignorance over freedom, independence, and awareness. When it appears more and more each day that those common values diverge from your own, all that's left of a country are irrelevant, invisible lines on a map. I don't find these worth fighting for ...The government beast in your home country feeds on debt and taxes, and the best way to win is for bright, productive people to move away with their ideas, labor, and assets. This effectively starves the beast and accelerates its collapse. Then, when the smoke clears, you can move back and help rebuild a free society."

This is the “Who Moved My Cheese” type of thinking – best to move on early, which is usually true. However, in this case one must ask if there is a freedom seeking place remaining on the planet? To me such a place needs to be safe and free from the reach of the central bankers! But I don’t see such a place, the central bankers have literally polluted the world with their corruptive filth. It’s so dirty that China and Russia will no longer trade with one another in it:

China and Russia quit dollar

St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.

Meanwhile back at home, your home is simply worth less, despite the very real erosion of your money – do not confuse the dollar index with REAL purchasing power, they are NOT the same (see gold rising today alongside a rising dollar weighted against other worthless monies):
Home prices appear to be a growing risk to the economic recovery. Case-Shiller's adjusted index fell for the third month in a row and fell very steeply, down 0.7 percent in September for the composite 10 index. At only plus 1.5 percent, the adjusted on-year rate extended its run of weakness. Unadjusted data, showing a 0.5 percent month-to-month decline and a plus 1.6 percent on-year rate, show similar results. Weakness is no longer concentrated in the West or Florida with declines sweeping across regions.

Oh yeah, oil shooting higher, home prices sinking like a stone – that’ll turn out good for Americans.

And now we have Obama’s “Debt Commission” about to vote on the flavor of AUSTERITY Americans must face!
Obama's debt commission report: 4 flash points

NEW YORK ( -- Get ready for some heated rhetoric about how to contain the unsustainable national debt.

The spark will be lit by President Obama's bipartisan debt commission, which is set on Wednesday to vote on a final set of recommendations. That report will be an amended version of a plan put out three weeks ago by the panel's co-chairmen, Erskine Bowles and Alan Simpson.

What you hear this week is just the start of a long national conversation. Next year, Obama and Congress will attempt to turn talk into policies.

But for now, here's a look at just four flash points likely to dominate the reaction to the commission's report: Social Security, defense spending, the mortgage interest deduction and the spending vs. taxes debate. [follow link to see their four points]

Sorry, but it is mathematically impossible to austerity our way out of debt. If you take down the debt, you take down the economy! Let me say that again… take down the debt and you take down the economy!

That is because ALL of our money is debt. And that’s why neither debt based stimulus OR austerity will work! The only thing that will work is to produce debt free money and to restructure/ retire the debt that’s already in existence. The real answer cannot be found with the PRIVATE central banks in control of the production of money!

And that makes all the current worldwide “rescues” and austerity talk a realm for the mathematically “challenged” (insane). Current mainstream media is nothing but a central banker marketing arm – REAL PEOPLE must tune them out and focus on REALITY, as hard as that is.

The VIX is jumping again this morning, it is pressing the upper Bollinger bands upwards. I continue to believe that the world’s markets are living on borrowed time and borrowed money, yet we are still moving sidways in the same range. The central bankers are smokin’ some pretty good stuff if they believe this game is going to continue to much longer. Don’t toke on their stuff, man, or next thing you know they will be dragging your neighbor off while telling you they are “terrorists!”

Monday, November 29, 2010

Morning Update/ Market Thread 11/29 – Morning After Pill…

Good Morning,

Equity futures are lower this morning, the morning after Ireland (or the cronies thereof) accepted an ill-gotten “rescue.” This “rescue” won’t benefit anyone but the central bankers, it’s nothing but a crime of the highest order - perpetrated not just on the people of Ireland, but also against the people of United States and much of Europe as well. The amount of interest they are paying is absurd, the actual interest rate is substantially higher than the touted 5.8% due to the finer terms of the agreement. Ridiculous, the Irish should have defaulted on the bonds that were the bankers problem in the first place, they should leave the European Union, and they should produce their own money without being indebted to the private bankers.

Meanwhile our bonds dropped like a stone, the dollar is higher with the euro substantially lower, oil and gold are slightly higher, while grain futures are soaring.

There are no economic reports today, just TWO POMOs to help cement the destruction of America. The Employment Situation Report this Friday will be the highlight of the week with quite a bit of data beginning tomorrow.

The markets for now have been moving in a sideway triangular formation which is easily seen on the 30 minute chart below:

SPX 1181 should provide support in the near term, but should that bottom boundary break, then as a triangle minimum the move should be worth about 18 points and will thus target about 1162, or as a pennant it would be worth about 50 points and therefore target roughly 1130ish. That would be interesting as 1129 is the top of wave 1 – probably not a coincident that it may target that area.

No violence yet on the Korean Peninsula as China offered to hold talks in December. That’s interesting, perhaps they are keeping their dog on a leash for now. Not sure if we’re bent on provoking a reaction or not, the events here are obviously important.

The Wikileaks document release is something. It is exposing the U.S. as the grand manipulators that we have unfortunately become. Of course the manipulators try to paint Assange as a rapist and as someone doing damage to real people… sorry, but he is simply shining light on cockroaches who are squirming because their actions cannot stand up in the light of day. Indeed it is weakening the U.S., not because of Wikileaks, but because we have an incompetent government who is doing evil work in support of the central banks. Of course our government tried to hack the Wikileaks site, then they release this nonsense pinning it on a “hacktivist for good,” LOL:
'Hacktivist for good' claims WikiLeaks takedown

(CNN) -- A computer hacker who calls himself "The Jester" claimed responsibility for the cyber attack which took down the WikiLeaks site Sunday, shortly before it started posting hundreds of thousands of classified U.S. diplomatic cables.

The Jester, who describes himself as a "hacktivist for good," said he took the controversial site down "for attempting to endanger the lives of our troops, 'other assets' & foreign relations."

He normally attacks Islamist websites, announcing "TANGO DOWN" on his Twitter account when claiming to have attacked a site. "Tango Down" is Special Forces jargon for having eliminated a terrorist.
Over the past few days, the Jester has targeted a handful of websites for reasons including "online incitement to cause young Muslims to carry out acts of violent jihad," "distributing jihadist instructional materials," and "for the online radicalization of young Muslims in US and Europe."

The Jester describes himself as "an ex-soldier with a rather famous unit, country purposely not specified."
"I was involved with supporting Special Forces, I have served in (and around) Afghanistan amongst other places," he told the website early this year.

The “Jester,” what a joke. This is obviously CIA and they are turning themselves into a joke along with the entire Administration. It’s quite sad to watch your country fall to this level. And as far as our Administration’s claims for potentially endangering people, why YES, it is our Administration who has placed many people in real danger with their actions and their brainwashing of the public.

Want to see another example of brainwashing? Here’s another CNN article from this morning telling us what energy hogs the Chinese are!

Why China is an energy consumption hog

NEW YORK ( -- Over the next 15 years China is expected to build the equivalent of New York City -- 10 times over.

That's a lot of concrete and steel, and it goes a long way to explaining why the country is using so much energy.

Roads, bridges, rail lines, skyscrapers and factories take tons of concrete, steel, chemicals and glass.

"They are building massive amounts of infrastructure," said Lynn Price, a scientist in the China Energy Group at Lawrence Berkeley National Laboratory, a U.S. Department of Energy research lab. "It takes incredible amounts of these energy-intensive commodities."

Earlier this year, the International Energy Agency said China surpassed the United States to become the world's largest consumer of energy. The news was somewhat surprising.

While China does have four times as many people, its economy is only a third the size. So where is all that energy going?

Statistics from the DOE show it is China's industrial production, not its 1.3 billion people, that is using all this fuel. Sure, the Chinese are driving more cars and using more electricity but that's a drop in the bucket, relatively speaking.

China's industrial sector accounts for over 70% of its total energy consumption. Meanwhile, the U.S. industrial sector accounts for just 33% of its energy consumption.

Okay, so who’s the energy hog? China has more than 4 times the population and produces FAR more actual goods than the U.S., yet uses about the same amount of energy! What’s really going on is that the U.S.’s GDP is the result of FINANCIAL ENGINEERING, it is FALSE. Yet we drive around in giant sized S.U.V.’s and F-350s producing little that’s real.

And while that is certainly not the most important news story of the weekend, it is important because it demonstrates the propaganda being disseminated here in the United States. We have become far better at warping people’s minds and perspectives than the Russians and Pravda ever were. Again, this deception originates at the central banks. They own and control the production of money, our politics, our markets, the military industrial complex, the media, everything – and it’s all false, based entirely on FRAUD. It started with the creation of the Federal Reserve Bank who is NOT “Federal,” they hold NO RESERVES, and they are not really even a BANK.

I know that’s a very negative world view, but one that I sadly believe to be reality. If we truly love the ideas and principles that our country is based upon, then we need to acknowledge those realities and set about fixing them. Investing in the “markets?” They are way too far gone for long term “investing,” they won’t be safe again until WHO controls them is changed. Get out the popcorn, it’s going to be quite a show from here on out.