Obama's Stock Market Weakness

The Dow fell 391 points today while the S&P 500 fell 37 points, 3%, to 1129.  The immediate reason was that yesterday the Fed announced a lukewarm as opposed to a hot easing whereby it is exchanging long term for short term securities.  Take this into account: Federal Reserve Bank Credit has increased over 300% in the past three years. That's the largest money supply increase in American history except when the Continental Congress destroyed the Continental, America's first currency, back in Revolutionary War days.  Given the massive easing, including QE2 earlier this year, one would think that Wall Street would be satisfied. But it isn't.  Dollar inflation isn't enough, and when the Fed announced a lukewarm response to the implosion of European socialism, the American markets crashed.  I've lost a chunk of change because I wasn't expecting QE2 to have had such a weak effect. Plus gold, following a record high within the past few weeks, is in a correction or consolidation mode.  But the strengthening dollar due to the Fed's relative conservatism means that cash has gone up in value, which reduces the losses in riskier assets.

The Obama administration deserves responsibility for recent stock market weakness.  The massive quantitative easing should have had more of an effect on the markets.  It still might. What's holding it back is that the left-wing Obama Democrats have sledge hammered America's economy--the health care bill, environmental regulation, and proposed tax increases frighten investors.  Perhaps Obama and Congressman Maurice Hinchey believe that subsidies to corrupt "green" businesses that quickly fail will somehow stimulate the economy.  Such are Democrats' and America's economics profession's superstitions.  Throwing away money will not stimulate the economy.  We are in for a generation of economic decline because of Obama, Bush and The New York Times.

Obama's Presidency Meant Change from Bush's: It's Anti-Semitic

The Wall Street Journal weekend print edition carries the stark headline "Israeli Leader Clashes with Obama." Until now I haven't been clear about how Obama and George W. Bush differed. On economics, both agreed that it was absolutely essential to give $12.4 trillion to badly managed financial concerns. Both felt free to give similar grants to corrupt business interests: Bush gave billions to Halliburton and, via his stimulus, Obama gave even more to interests like George Soros.  Bush left office with rising unemployment, and Obama's administration has seen the highest average unemployment since the Carter years. Bush started two wars, and Obama has started a third war. Bush's Fed doubled the money supply, and Obama's Fed more than doubled it again. Bush claimed to be a conservative who was compassionate, but handed hundreds of billions to the pharmaceutical industry via his ill conceived prescription drug plan; Obama claimed to be a Democrat who was compassionate and handed hundreds of billions to the insurance industry via his ill conceived health reform plan. Bush permitted the United Nations to send environmental inspectors to American parks for unknown reasons (based on a treaty that George H. Bush signed); Obama is advocating allowing the UN to rescind the Second Amendment.  Bush stomped on Americans' sacred liberties with the Patriot Act. Obama got elected by claiming that he is in favor of civil liberties, lying to his supporters.  When elected, Obama renewed the Patriot Act and, with the support of the Democratic Party-led Senate, will renew it again.

There is one big difference.  Obama is an anti-Semite who will relish seeing Israel fall. Bush wasn't.

Concerns about US-Israel Relations Mount

I received this communication from Sharad Karkhanis:

Subject: Very disturbing information - sent to me by a friend.

I have just received this: from my friend in Israel, who moves in high circles in Israel. Tonight Clive and I heard very disturbing information – we heard it  from a consultant to the United States who meets once a month with the President in the White house. He is in the know. This is what actually has happened with the relationship with Israel and the USA and it is not pretty:

1.       Israel during the Bush and Clinton Administrations – had landing rights in Turkey , and in the USA bases in the middle east and more recently under George Bush, in Iraq . This was in case they were invaded by Iran , or Saudi or any other Arab country. Obama has withdrawn those landing rights. Israel now has nowhere to refuel in the middle east.

2.  Netanyahu was  instructed to come to the white house for a meeting. He was brought in through a servants entrance – the only head of state ever in US history to be given that disgraceful treatment. He was not offered even a cup of tea – but was lectured to by Obama who told him that he is not permitted to attack Iran and that he has to withdraw all forces from the West bank and may not build any more settlements (neighborhoods) in East Jerusalem.

3.       Israel found out that there were four terrorists meeting in Dubai . As they have done for the past 62 years, they informed the US of that and said that these terrorists had to be dealt with. Obama said under no circumstances. Israel decided to go ahead. They killed the one terrorist who showed up. However the CIA was sent there to film the entire event by Obama – and then a concerted PR campaign was waged by the White house to discredit Israel and what they did – this kind of action has taken place with US support for the past 62 years since we have common enemies.

4.       Obama has refused to oppose Syria ’s re arming of Hezbollah and Hamas – Israel now sits in imminent danger from the amounts of missiles that can be sent into her territory.

5.       Israel will never tell the US again of its plans – since they cannot trust us.

6.       Israel intends to attack Iran –there are over 30 installations  of which 4 have underground bunkers that contain nuclear weapons. Israel cannot wait any longer. The US is no longer supporting Israel ’s
self defense.

7.       This is the same man that gave the White House a full file on the 9.11 attack – his warnings and proof were laughed at.

8.      He believes that the next attacks in the USA will be mass transportation – subways and malls – especially the largest malls where the most people can be killed  - and that Vegas and wherever there are
conventions of employees will be a huge target. We are not prepared and are naïve in our lack thereof.

9.       Once Israel attacks Iran , every Jew and Jewish institution will be at risk – temples, religious schools etc. We must be prepared.

10.   This kept a room of 200 people spellbound. It is not fiction. It is fact. What can be done? It is essential that everyone who doesn’t know yet, now understands that the protection and survival of Israel is not on Obama’s list – and he is now taking ACTUAL steps to move all protections away – no more landing rights, negotiating with Iran and Syria and he is no friend of the Jewish people and Israel. We must be sure that we elect politicians who protect Israel as well as the USA – our interests are intertwined. Please forward to everyone you know.

Explanation of the State of the Union Address

The above is the cover of this week's Globe Magazine. According to the Globe's website:

"President Barack Obama has blown $10 million on drunken White House parties, Washington insiders tell GLOBE. This week's Special Report rips the lid off the Commander-in-chief's outrageous antics, including boozy conga lines and dinners featuring $150-a-pound Japanese beef! It's must reading for every American."

President Andrew Jackson's Message to the Federal Reserve Bank, Today's Congress and President Obama

"It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions. In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society--the farmers, mechanics, and laborers--who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their Government. There are no necessary evils in government. Its evils exist only in its abuses. If it would confine itself to equal protection, and as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing. In the act before me there seems to be a wide and unnecessary departure from these just principles.

"Nor is our Government to be maintained or our Union preserved by invasions of rights and powers of the several States. In thus attempting to make our General Government strong we make it weak. Its true strength consists in leaving individuals and States as much as possible to themselves--in making itself felt, not in its power, but in its beneficence; not in its control, but in its protection; not in binding the States more closely to the center, but leaving each to move unobstructed in its proper orbit.

"Experience should teach us wisdom Most of the difficulties our Government now encounters and most of the dangers which impend over our Union have sprung from an abandonment of the legitimate objects of government by our national legislation, and the adoption of such principles as are embodied in this act. Many of our rich men have not been content with equal protection and equal benefits, but have brought us to make them richer by act of Congress. By attempting to gratify their desires, we have in the results of our legislation arrayed section against section, interest against interest, and man against man, in a fearful commotion which threatens to shake the foundations of our Union. It is time to pause in our career to review our principles, and if possible revive that devoted patriotism and spirit of compromise which distinguished the sages of Revolution and the fathers of our Union. If we can not do at once, in justice to interests vested under improvident legislation, make our Government what it ought to be, we can at least take a stand against all new grants of monopolies and exclusive privileges, against any prostitution of our Government to the advancement of the few at the expense of the many, and in favor of compromise and gradual reform in our code of laws and system of political economy."

---President Andrew Jackson
Bank Veto, July 10, 1832
Upon President Andrew Jackson's veto of the Charter of the Second Bank of the United States, the predecessor of the Federal Reserve Bank.