378. Merkel responds to Euro currency concerns

During the past few days, many articles were delivered questioning whether the 17 countries presently using the Euro will stay using it. Many professors and such are leaning toward several of the countries moving away from the Euro and back to their own currency. I can see the problem: Europe's predominantly socialistic governing views had hurt their plans from the start. Merging strong-economic countries with weaker ones, and some just flat out terrible ones, meant that the stronger countries would have to bend to support the weak ones. However, was there ever any commitment? Or, did they plan like we do, i.e., just throw it out there and see what it rattles and cant last (like Obamacare), despite astronomical costs never really assessed at more than 10% of what the final amount will be. Today, Germany's Merkel laid out some reality to muster Euro support. They continue to fight for common rules and laws that satisfy all. Yet, we know that what has to happen is to everybody give up something. Hope the EU realizes that and get's the fires distinguished fast, or we'll be shoveling hot coals all of 2012.

btw. Happy New Year.

377. Thank You Obama - Iran Sanctions

A first step in additional sanctions on Iran is on the way. Keep an eye on the EXCEPTIONS! I would hope NONE unless friendly nations are at risk re oil supplies. A big Thank You for Obama at this time.

Another article summarizes support for the UAE re Iran's latest threats. UAE is also involved with the chaos in Syria. The world needs to continue to unite.

But then there are others, like Chavez who questions whether America doesn't have a cancer-causing agent that is responsible for the latest, including him, Latino leaders revealing their cancer.

376. The China Fed and its games

Reuters article re how China is trying to curb inflation while keeping the yuan as low as possible and making more money available to small businesses gives you an insight of China's "Federal Reserve." Like our Federal Reserve, China has many spigots to open to manipulate the economy. They can't just CREATE more money, because it would lower the yuan when you want to raise it to fight inflation or keep it in check by keeping it where it is. They also don't want to see the yuan increase because it hurts their exports even more (higher currency hurts exports, and therefore revenues, and therefore economy). So, how to you create more money for the small businesses that already have gone to loan sharks to get capital to stay afloat? You manipulate the reserves banks hold. If you lower the reserve requirements, they then have more money to loan to the small businesses (OR INVEST themselves). What will they do with the extra, now freed, reserve money? We shall see, because this is what they will continue to do in 2012. I don't believe this will abate inflation, but IF the banks free enough reserves to loan AND they do loan it out, the economy might get a boost from small business growth and job growth. More revenue from inside China might occur. I believe their goal is to get consumers to buy more of their own products. That would raise revenues as would a lower yuan that drives more exports would. China looks like a flat country  re economy growth in 2012. But, with the large cities being build up INDUSTRIALLY, they need to get people living and consuming within them now. Can't ask people to move in without giving them $$ (increase jobs, salaries) to sustain life. Tricky business. Of course, China has done this a different way: make every young individual enlist in the military. I might lighten up on emerging markets in 2012. Need to do more analysis.

375. Who should comply? Iran or World?

An OPEC official claims that: "West out to withdraw Iran oil ban plan: official." If U.S. goes ahead with oil ban, Iran will close Strait of Hormuz and the world will be in danger! How about, Iran continues with nuclear weapon and world won't exist? Do I care about the greed of OPEC that clouds their vision of threats in the world? Saudia Arabia already stated they will make up for any oil volume affected by such a closure of the Strait of Hormuz. Sounds to me OPEC is scared that it might self-destruct itself. Now would that be any big loss? Could we live with more competitive oil prices than a FIXED greedy one? Next they will ask America NOT to build nuclear plants, wind farms, and drill more oil over here. I say its time for an Iran squeeze. However, what does OBlunder say? "Cluck-Cluck" or "Screw America"? I'll be the first to give him kudos if he grows real American b*lls.

374. Big Fish = Little Fish

Today's USA article declares that corporations have increased syndicate borrowing. I take this as meaning the larger corporations are again borrowing for long-term growth. Now we need the small businesses to follow and for them to hire. I think it will come shortly. Where there are big fish stirring the water, there will be big fish to claim the scraps. Look for service small businesses to ramp up to support big corporation growth. Maybe this is enough news to hold the market through 2011 or even raise it more. But, keep in mind, that this is U.S. news and not reflective of the muck in Europe or continuous mid-Eastern chaos. As always, keep an eye on China.

373. OBlunder now promotes another vice

Today we learn that OBlunder decided that gambling is now permissible across state and country borders by rescinding the ban of gambling over the Internet, except for sports still banned by the Wire Act of 1961. All are allowed to use the "controlled and regulated" federal communications lines/waves to tempt those vulnerable to the gambling addiction. Don't we have enough addictions in the world? Of course, the alcohol prohibition didn't solve anything, thus we should promote everything? One could look at this as a victory for the states who want to allow gambling within its state. For them, the Federal Government is finally out of the picture. One could say this is favorable. But, does this now force all other states to write laws to ban gambling within its borders? Can they legally ban the companies now freed to run gambling from their residents? Are there taxes involved? Another can of worms for the states to wrestle when they really don't need additional headaches and expense. I  really have no opinion as to issue other than it doesn't come at a good time, nor does it seem that much thought has gone into changing the rules. It appears that OBlunder is again throwing trash at the country as fast as he can to destroy it without concern of America. What do you think? Is this overall good or bad? Right at this time? Soon OBlunder will have more balls in th air for us to juggle that he believes we'll no longer focus on what is important: the economy, jobs, foreign policy, tort reform.

372. Virginia: Land of the morons

What can you say about a state that makes it's primary elections ridiculous to qualify for AND lies about whether you are qualified or not? "republican Gingrich out of Virginia primary election" spells out LIAR and DUMB. Only TWO of the Republican candidates qualified for the primary elections there. The article clearly states that the Virginia state board earlier said he Gingrich ad more than the 10,000 signatures needed to qualify. WHAT happened to the others: Bachmann, Huntsman, Santorum? Only Romney and Paul are on the ballot. And people are debating the necessity to provide an ID card because it may prohibit some from exercising their RIGHTS! How about this Virginia? HOW did you assist the candidates to ensure they qualify so YOUR RESIDENTS COULD VOTE? OBlunder 101 politics and maneuvers obviously. Time to cut their borders and let them float over to Russia the hard way.

371. DJIA: Push to 12700, or fade to 12200 again?

We held support as expected, but this time blew past the 12,200 DJIA resistance (12294 close today). This indicates a move the next resistance level of 12,700. Was this a Christmas anomaly? Or can we sit back during next week's short trading period and float a little higher? 12,700 is around the corner; but when will we get there? I had predicted end of 1st or 2nd week in January before a slide back to the new support of 12,200. With Congress gone and ECB asleep for the holidays I would venture to guess, barring something catastrophic in the world, we can enjoy our holidays. I have already done my year end tax planning shuffle, so my feet are already up; hope your's are also. Have very Merry Christmas and Happy New Year.

370. Regulators Approve Nuclear Reactor Design

FINALLY! "Regulators approve new nuclear reactor design they say is safe." This is all that needs to be said in a process that has already taken too long. Let's keep the AP1000 nuclear reactor construction projects ON SCHEDULE. This is good news for the economy, jobs, and the market long-term.

370. Dunderhead Republicans

So, how many republicans does it take to screw in a light bulb? The question is not applicable because there weren't any light bulbs nor electricity back in the cave man days which is exactly where Congress still is! Cluck, cluck, cluck. Why did the chicken cross the road? To get away from the other goose.

I suppose We the People are supposed to just laugh at today's cowardice by the Republicans. See "House Republicans Cave on Payroll Tax Cuts Extension."

Guess they wanted their Christmas MONTH off too! A longer term solution will be in the hands of yet another SUPER committee once they all convene. In the meantime, through until February 1 at the earliest, the Canadians get to discuss a different path to the Keystone Pipeline than planned and we put jobs, jobs, jobs in jeopardy while we continue to burn OPEC oil! Thanks you OBlunder and Congress. Take more $$$ away from our children's SS fund. Favor those NOT in need over those IN need. VOTE THEM ALL OUT -- BOTH parties who continue to obstruct what is right!

369. Quote of the Day

Is this you?

"Each thing I do I rush through so I can do something else"


-- Stephen King in Insomnia


[The older I get, the more I can relate to Insomnia]

368. Again the AP Feeds the Public Crap Heading

The Associated Press obviously knows most people don't read the details even within their own articles. Look at this one stating "Gingrich, Clinton had stormy partnership." What does it SCREAM to you? Do you get the image of two rams butting heads? Do you think maybe they SHOUTED this heading because Gingrich claimed he worked with Clinton for all the reasons he said he did, and the Liberal AP didn't want the public to accept that? Now read the content and you will learn that, yes, politics are still played as today, BUT they did find a working relationship to indeed get all the things Gingrich claimed accomplished. Plus, if you listened to Clinton on the O'Reilly show last night, he said just that (also noted in the article content).
Just ANOTHER AP negative, Republican-bashing heading for those who ONLY want to see the surface of things. You know, the people who vote because the candidate gives them a pen, or because he can read a teleprompter well, or because he is young and handsome, or he is a senior like them, or any other reason OTHER than POLICIES AND FACTS! How cleverly INDOCTRINATING the Associated Press is! I have become highly skeptical of their articles or anything on Yahoo! today since they are now affiliated with the Liberal ABC network. This is truly a disservice to We the People.

367. The AP Starts Another Fire!

Today the AP put out this article, well, this statement actually since the article was nothing more than the heading: "Turkey says its recalling its ambassador to France, halting official contacts" IS the content. If you go back to my blog #351 you'll see why. France NEEDS a LAW to state its position re Turkey's genocide back in the Ottoman Empire days. But, they NEED the LAW to make it illegal to have a belief different from theirs (which is probably true, but not much different from a lot of "empires" back in those ancient days). But to MAKE IT A CRIMINAL act NOT to believe in their position? This is like a TREASON LAW? Come on France. Get over it -- people have different beliefs. Altering someone's current beliefs takes persuasion and trust building. I think that's what's important. NOT dwelling on the ancient past and destroying all attempts to build trust and cooperation today. Does France really believe the people of Turkey STILL maintain the same beliefs AND are at the brink of taking actions similarly? Do we have another Iran here? A North Korea? Is the UN working on this too?

Anyway, my point of this blog entry is the fact that the Associated Press LOVES to start fires! Don't you love the MEDIA? Maybe we need a LAW in AMERICA to ban articles like this -- or make them write it in French so we Americans don't have to read it.

[New link as of approximately 6:15 pm CST is "Turkey-France ties fray over Armenian genocide bill"]

366. The Grinch-Writers Just Can't Leave the Market Alone

This Fitch rating service warning just let's you know that the Grinch has an eye on America. Although they said nothing that wasn't already said before re Fitch, the authors did throw in some threats from Moody's Investor Service plus a rehash of one already acted upon by S&P when they did lower America's rating. This news from the Grinch-Writers during the Euro Zone crisis can only add fuel to the fire despite a no-action comment. So, hold on to your hats and get your cash ready when it hits the floor. Pull up a chair and warm yourself next to the fire until then.

365. You Make the Call re Defense

This article was just brought to my attention re removal of about 75% of the National Guard along out Southern border. Another OBlunder? Arrests are down, true. So are attempts to cross. Could it be our poor job market that is deferring the non-criminal illegals from their attempts. Are there reports as to the mix of individuals attempting to cross? Did the criminals slow down as much as the non-violent? Who knows? I contend that we should not put on our slippers and rest simply because some statistic says bad things have been reduced a little. It STILL ISN'T GOOD ENOUGH. When you look at all enforcement, 18,500 agents included, the reduction will be about 4.5% where the skilled agents are being kept in tact. Is the Pentagon just paying for the National guard? And the Agents are paid from a different bucket? Is the Pentagon just making a statement that it HAS to do so because OBlunder's Super Committee failed to agree on a balanced budget and now they are forced to reduce this much? Is the Pentagon just showing it is incompetent too by taking its 5% cut dealt to them and redistributing that cut evenly throughout its payroll so they too do not have to put in an effort to determine where thing should be cut? The overall incompetence of government AND agencies reeks. I suppose one could make a case that electronic and air defense over the border is the way to go. Probably true, given all the holes still there. But, do you see anything in this article to suggest where that funds of ADDITIONAL technology will be granted and that the shipments are already in progress and will be in the air BEFORE the guards are reduced? Just more things to consider re this article that barely scratches the surface of reason WHY the guards are being reduced. I personally see no logic and reason to back away from the border at this time. As a matter of fqct, I'd take some of those returning from Iraq (people forget they aren't getting out of the military) and put them there to replace the guards in bigger numbers. NOW is the time to take advantage of ADVANCING in border control; NOT to retreat. Thanks for the heads up Mike.

364. Up Market - But a bit overdone.

Careful now investors. Remember the volatility prediction to buy only near the lows. Don't go chasing stocks after the nice +2.9% DJIA and +3.2% Nasdaq. Patience. You might want to do you PLANNED year end selling while its up. An immediate .075-1% correction may be warranted to return to whatever-normal-it-should-be. Below that, get ready to order for the fun in January.

363. This is how you confront Iran -- Apply it to North Korea too

A previous blog entry pointed out the ridiculous plan to give North Korea Aid $$$$ to PAY them to continue talks. Here is how we should treat all countries who show antagonistic attitudes and actions to threaten the world.

362. Phew! I get another Birthday before End of World

I didn't know the specific date, but knew the world was predicted end in 2012. However, AFTER I get to celebrate one more birthday. Back in the Navy we used to have Short-Timer calendars to help us count down the days til we got out of active service. You can imagine the pictures -- color by mumber (backwards) to the sweet spot. Here's a challenge: Come up with a color by number to countdown the Mayan end-of-the-world apocalypse belief. You might want to read "The Ruins" by Scott Smith to prep you for the end-of-the-year events. I'll be here December 22, 2012 to tell you it didn't.

361. OBlunder...you make me laugh

Yo, O. I don't want the payroll tax cut to pass! Why would I want to sacrifice the SS & Medicare Funding to support those NOT in financial HURT? Chastise the Republicans and others who rejected the bill as much as you want. YOU are the one who needs to be whacked in the head (calling Gibbs from NCIS)!

360. Plus for Euro Zone

Today's European markets and so far U.S. markets reacted to the 3-year inflow of $$$ to the European banks (Euros to borrow that is). 3 year's work of funds were made available now, instead of shorter-term cash only. Germany was commended for the lift, although it's market gathered more steam from the ECB move, as did Spanish bond sales. A bit of good news to secure my market volatility prediction back in #342 and again in #348. Don't forget, #355 will be updated regularly with current Euro Zone status and plans.