God always win

By Admin, November 4, 2009 10:29 pm

God always win I stayed up until midnight last night watching the election returns for Governor of VA and New Jersey, as a conservative I was thrilled. For the Conservatives and the Republican Party, don’t be too quick in grapping the prize, it’s not yours yet. You know the Liberal Machine will come out with everything they have and then add lies to it. Let’s keep one thing in mind as we go forward towards the mid-term elections, don’t run against your opponent, run on your vision for the future of America, don’t run against your opponent, run against Obama and do not allow the liberal machine (particularly the left-wing main news media) to set the standard for conservatives-Republicans-faith based Christians by their accusations of bigotry and racism; set your own standard with substance and godliness and advise the secular progressives to “kiss your ass”. Why not? They lie about you, they follow a double standard and with a smile stab you in the back knowing you won’t complain because you are held to higher standard morally; surprise them.For the Democrats and Obama: I accept that most of you are secular and don’t believe that GOD is in command, but it really doesn’t matter what any of us believes. The end result is always what God has purposed for that precise moment. America, God turned his back on this administration last April when in less than two weeks our President proclaimed that we were not a Christian nation and bowed at the seat of Satan, yes Mecca is the seat of Satan. Some 3500 years ago in 1491 BC the most powerful empire with the most powerful military thought they were only dealing with a “nobody” group of Hebrews, Egypt lost, they were dealing with God. King David and King Solomon both had great passions when it came to women and David even sent his top general sent into the midst of battle to die so he (King David) could have the general’s wife; yet these two kings were loved of God and greatly rewarded. On the other hand King Saul only refused to take the head of the king of Amalek and for that he was disowned of God and the kingdom was taken away from him, Amalek was the perpetual enemy of God dating back to the Exodus and Saul had been told of God to spare no one. After the Roman Empire fell there was still some form of that empire around but it would have been recognized as West Rome and East Rome (east would have represented the Middle East). A new and very young ruler in West Rome set out to reunited the Roman Empire and actually doing well and there was not a military strong enough around to stop him. But God was not ready for the fourth beast. In 538 AD just as it appeared that the Roman Empire would be revived the Plague kills 100 million and over half of the population of Europe died, and so did Rome. Barack Obama, God turned his back on you last April and all of the baby killers, gay activists, Hollywood liberals, labor unions, earth people, “green” activists, conservative haters and your inner circle of “America” haters cannot save your presidency; only God can. For whatever its worth, everything you want will come to be, God just isn’t ready for it at this time. You can still do it, just not without God.

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OBAMA CAMPAIGNED FOR THE MIDDLE CLASS

OBAMA CAMPAIGNED FOR THE MIDDLE CLASSA few times since April I have written that the Democrats and Obama were the party of “Big Business” and the powerfully rich. When Obama/Pelosi/Reid goes after the rich for additional taxes, after big businesses, insurance companies and of course the “Republican Party”; they are only going after those that didn’t support them. “GE” is a big company, they are in bed with Obama and the Democratic Party, and so is “Big Drug Companies”, the powerful Labor Unions, GM and most of Wall Street. According to Federal Commission Records: the 2008 Obama Campaign received 12.6 Million Dollars from Wall Street firms, McCain only 7.9 Million; Goldman Sachs-Citigroup-JP Morgan employees gave to Obama-Biden-; employees of Lehman Brothers gave Obama $370,000 and only $117,000 to McCain; since 1998 the financial sector gave Obama 37.6 Million, 32.1 Million to McCain; but Obama received that amount over four years, McCain over ten years. When you hear Democrats accuse a Conservative of bigotry, been for the rich, for big Oil, of racism and of course hypocrite; consider the strong possibility of the liberals concealing their traits and actions. And of course we have to consider the favorite pastime of the liberal left: say something, anything (even lies and deceitful spin) loud enough and often enough and people will believe it. Don’t take my word/opinion on any of this, go on-line and gather some data going back to 1929 and you will find that it was a Democrat/Liberal that was responsible for entering America into War, 80% of most recessions, high inflation, high interest rates and of course the Great Depression. It has always been the Democrats (the extreme radical left-wing progressives) who have put Federal Judges on the bench who allow child molesters light sentences while eroding the rights of Christians, who with the help of the ACLU sue school districts for Nativity Scenes while protecting the “Freed of Speech” of Muslims to shout “death to the Jew and America”. Can you imagine a “Pentecostal” praying at the airport, Muslims not only can but the ACLU will protect their right to do so. Enough is Enough is Enough; it is time that we vote people into Congress (regardless of Party) that still believe in the Constitution and the “Freedom of Speech” for all Americans, not just the Activists and those whom the ACLU declares have rights. There are various sites on line where you will find information which reveals that the Democrats in Congress and Obama are rewarding those that either got us into this economic mess or never saw it coming when they should have. I will have some precise facts of this for you next week. I have been writing since January that this Administration and Democratic Controlled congress would do nothing for the “middle class” but higher taxes and I still support that statement and firmly stand behind it. Tell me hard working blue collar, tell me seniors, tell me Black Americans, tell me Hispanics, tell me 30 year olds, tell me Jewish community; have you seen “change we can believe in”, do you have a job, is your mortgage underwater or in foreclosure, does $50.00 still bring home five bags of groceries, did your 401K lose 40% of its value; I picked the above groups because they represent a strong segment of the Democratic Electorate and in the election of 2008 you folks put this man in office. I actually have NO problem with his inexperience and total lack of qualifications for the office, my problem is with his inability or refusal to surround himself with mature qualified advisors who don’t hate America.

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Now and then//1929, 2009//the coming Depression. Part IX

By Admin, November 2, 2009 9:18 pm

Rising “Gold” prices used to mean that “people” feared inflation. There are three things wrong in today’s picture: (1) there has been no inflation since February this year, inflation then was less than one per cent (.24%). March saw deflation of .38% or another way of looking at it, inflation of minus .38%; the deflationary rate continue to rise through July and went down slightly in August and September. Still, though, we have been in deflation since February to date; I have asked then why “Gold” has risen approximately 50% during this period with no inflation? What is driving Gold prices up when there is no inflation, also keep in mind that rising Gold prices (due to inflation) would normally mean rising interest rates and falling Treasury Bonds and at this time the exact opposite is happening to government debt. (2) Rising “Gold” prices used to mean falling numbers on Wall Street, yet, the Stock Market has risen (until three days ago) more than 11% since June. I now have to ask, what is driving the Market up? (3) Government intervention in the financial markets to almost 29% of GDP is beyond comprehension, (during the “Great Depression government intervention was a mere 3.2% of GDP) and has confused established factors which determine the outcome of results in the financial markets and Wall Street. Folks, something has got to give, this trend will not continue. It is foolish to think that the flooding of the financial markets with government money will cure this chaotic economic disaster we are in. I stand by what I have been saying since the beginning of these series and that is that we are now entering a severe “Depression”. I wrote a while back in one of these posts not to be deceived with the up swings in the market; the market will fall before next summer. There is absolutely nothing with substance going on to sustain the market. So what is driving gold prices up, stock market and Treasury Bonds; I don’t know but would make an educated guess that a lot of it is simply assumptions and the belief that this administration will continue to pump money into the financial markets. Wake up folks, Barack Obama is not at all concerned about the middle class, about jobs or about the economy. “Tarp” and “Stimulus” money thus far has gone to those “big businesses” that supported him, to any and all “labor unions” and to “States” that are “blue” or obey his every wish. Beware of an unusual rise in the strength of the dollar; too many other economics are just waiting to offload their dollars. They are no longer looking at just the strength of the dollar but at the following troubling facts: (1) unemployment-up 50% since November 08, (2) GDP-down 25% since November 08, (3) Housing starts-down 10% since November 08, (4) Food Stamps-up 15% since November 08,  (5) mortgages underwater-up 66% since November 08, and (very important) DEFICIT-up 300%-YES- THREE HUNDRED PER CENT. For decades we have believed that Wall Street (Financial Markets-Industry) gave us an indication of the heartbeat of the economy and/or the future of economic success; that is no longer true or even believable. Our markets, our industries, our healthcare, our freedoms and lately even our “freedom of speech” are been manipulated, coerced, controlled and hidden in lies and deceits by Washington. It is no longer a “Free Market”; it is Washington and Wall Street, it is Washington and GM, it is Washington and GE, it is Washington and SEIU and at its best this government intervention with the markets and industry has created market distortion and there we have the ONLY REASON the Stock Market has gained since last March. The fall is around the corner. We need to put a face on this illegal game which is been played with our economy, we need to put a face on the attempt to silence any that would disagree, we need to put a face on the “real brown shirts” and folks that face is NOT THE CONSERVATIVE MOVEMENT.

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I still believe “Depression Ahead”

MONEYANDMARKETS»


Monday, November 2, 2009

 

[«] Money and Markets 2009 Archive View This Issue On Our Website [»]

The Great Hoax of 2009-2010
by Martin D. Weiss, Ph.D. Dear Subscriber,

Martin D. Weiss, Ph.D.

Before he died, Dad warned me of false profits … and fake promises.

“Beware,” he said, “of shaky gains hyped up by Wall Street.

“Watch out,” he insisted, “for unsustainable economic recoveries trumpeted by Washington.

“And no matter when or where you may be, don’t be fooled by illusions of wealth and prosperity.

“If they’re built on a foundation of shaky debt, they’re suspect. If they’re driven by unbridled speculation, they’re pure fluff. And if they’re bought and paid for by Washington, they will certainly end in catastrophe.”

Sure enough, in the years that followed, millions of Americans were fooled by illusions of wealth created by the Great Tech Bubble of 1998-1999.

Millions more were fooled for a second time by illusions of prosperity in the Great Housing Bubble of 2005-2006.

And now, despite these blatant lessons of history, they are being fooled again — this time, in …

The Great Recovery Hoax of 2009-2010

There can be no debate that, in each of these episodes, things did go up: The Nasdaq soared before it crashed. The median price of U.S. homes skyrocketed before it collapsed. And now, the U.S. economy has reversed course — from four consecutive quarters of contraction to at least one quarter of expansion.

There also can be no doubt that these trends do not end overnight. They can continue for months — often plowing over skeptics and even exceeding the expectations of believers.

Most important, however, there can be no question that all three of these episodes have had one key element in common that ultimately self-destructs: Massive intervention, support, and free money from Washington.

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To get a solid sense of how that’s unfolding this time around, pay close attention to these three independent economists:

Jim Grant, Founder and Editor,
Grant’s Interest Rate Observer

Jim Grant, originator of the “Current Yield” column in Barron’s and founder of Grant’s Interest Rate Observer, demonstrates not only that today’s recovery is bought and paid for by Washington … but also that the relative size of Washington’s intervention is even larger than you might think.

  • In the ten prior U.S. postwar recessions, the government responded, on average, with fiscal stimulus of 2.6 percent of GDP plus monetary stimulus of another 0.3 percent of GDP.

Combined stimulus: only 2.9 percent of GDP.

  • In contrast, during the current recession, the government has counter-attacked with fiscal stimulus amounting to an estimated 18 percent of GDP … plus monetary stimulus of an estimated 11.9 percent of GDP.

Combined stimulus: a whopping 29.9 percent of GDP.
That’s an unprecedented — and unimaginable — ten times more than the average stimulus of prior recessions.

Grant’s comparison of today’s government stimulus with that of the Great Depression is even more striking:

  • He points out that, in the early 1930s, GDP fell 27 percent, while the government responded with monetary and fiscal stimulus adding up to 8.3 percent of GDP.

Thus, using Grant’s numbers, I calculate that, for each percentage point our economy contracted, the U.S. government came forward with 0.31 percentage points of stimulus.

  • In contrast, in the current recession, U.S. GDP contracted 1.8 percent (at the time of Grant’s study) … while, as we just noted, the government’s stimulus has amounted to 29.9 percent of GDP.

Thus, for each percentage point that our economy contracted, the U.S. government has jumped in with 16.61 percentage points of stimulus.

Conclusion:

Relative to the disease, the government’s “cure” for the Great Recession today packs 54 times more firepower than the government’s response to the Great Depression of the early 1930s. And this does not even include trillions more in U.S. government guarantees to shore up the financial system.

Proponents of the government’s intervention may try to convince you “this is what it takes to avoid another depression: We’ve got to attack the contagion with big guns!”

However, Grant worries, rightfully so, that the cure may be far worse than the disease:

“If it’s taking this much to revive today’s economy,” he asks, “what kind of jolt might be necessary to succor tomorrow’s? An even bigger shock, we surmise, if tomorrow’s economy is no less encumbered than today’s. But it’s almost certain to be more encumbered, since the active ingredient of the Bush-Obama palliative is credit formation, the very hair of the dog that bit us. Skipping down to the bottom line, we renew our doubts as to the staying power of the paper currencies and to the creditworthiness of the governments that print them.”1

John Williams, Founder and Editor,
Shadow Government Statistics

John Williams is the economist who has single-handedly and repeatedly poked big holes in the government’s data that tracks price inflation, unemployment, money supply and the economy as a whole.

In his Shadow Government Statistics alert of October 29, he pokes an equally large hole in Washington’s pitch that the third-quarter rise in GDP announced last week is “sustainable.” His main points:

  • All U.S. recessions in the last four decades have had at least one positive quarter-to-quarter GDP reading, followed by a renewed downturn. This one could turn out to be no different.
  • The estimate of 3.5 percent annualized real growth for third-quarter GDP included a 1.7 percent gain from auto sales, a 0.6 percent gain from new residential construction, and a 0.9 percent gain from a largely-involuntary inventory buildup (caused by sales declines which are deeper than corporate planners expect).
  • In sum, these one-time stimulus or inventory items represented 92 percent of the reported quarterly growth.2

Chris Edwards, Director of Tax Policy Studies
Cato Institute

Martin D. Weiss, Ph.D.

Chris Edwards — formerly a senior economist on the congressional Joint Economic Committee examining tax issues and currently a Director at the Cato Institute — exposes another gaping hole in the 3.5 percent growth reported by the government last week:

While the government’s share of the economy has grown steadily … the contribution from private investment has fallen through the floor.

He writes:

“The third quarter GDP numbers show that the economy is only starting to ‘recover’ because of growing government and expanding consumption, which has been artificially inflated by large government transfers.

“Business investment continues to be in a deep recession. Companies are simply not building factories or buying new machines and equipment.

“Why not? I suspect that many firms are scared to death of higher taxes, inflation, health care mandates, increased labor regulation, and other profit-killers coming down the road from Washington.”3

Edwards goes on to say that it’s too soon to speculate on underlying causes. But I would add that an equally bloody killer of private investment is the diversion of scarce credit from small and medium-sized businesses to wild-and-wooly Wall Street speculation, as Mike Larson has pointed out here week after week.

It’s all part and parcel of the Great Recovery Hoax of 2009-2010.

Like the great bubbles of recent memory, it could continue. But it will ultimately end in disaster.

My Recommendations:

First, don’t fall for the hoax. Instead follow independent thinkers like Grant, Williams and Edwards. You can

Bernanke going berserk! Again!

Second, don’t expect Washington to back off immediately.

In fact, right now, the Fed Chairman Bernanke is doing precisely the opposite. He’s buying even more mortgage-backed securities and boosting the monetary base (currency and reserves at the nation’s banks) to a record high, reached just last week.

Third, don’t wait around for the next disaster before taking protective action. For several weeks now, we’ve been warning you of a sharp stock market correction, and with Friday’s 250-point plunge in the Dow, it’s clear that correction is here.

Fortunately, Mike Larson, Claus Vogt and other Weiss Research editors recognized the “Dow 10,000″ euphoria this month as a signal to take some profits off the table for their subscribers — and even buy hedge positions for a decline. If you haven’t done so already, it’s probably not too late to follow their lead.

Fourth, no matter what your trading approach may be, don’t forget the importance of cash. Even with a declining dollar and near-zero interest rates, it’s still prudent to keep a good chunk of your wealth out of the market entirely.

Fifth, we will soon provide our forecasts for 2010. But in the interim, please let me know what you think the consequences of this great hoax will be. Just click here to go to my blog and post your comments there.

Good luck and God bless!

Martin

1 Grant’s Interest Rate Observer, Vol. 27, No. 7a, April 3, 2009.

2 John Williams’ Shadow Government Statistics, Commentary Number 254, October 29, 2009.

3 Cato@Liberty blog post by Chris Edwards, “The Death of Private Investment,” October 30, 2009.

 



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