November's Job Picture: Great If You Want Part-time Work and Are Over 55!

America's Profile

This is What is Important to Americans!

You Might Want to Consider Buying "DOG" for a Trade at These Levels!

Executive Order (Action) Offers Firms $3,000 Incentive to Hire Newly Legalized Illegals Over Americans

 Do you fully comprehend the economic ramifications to the President's Executive Order on illegals in American?  The Washington Times states it as follows:

"Under the President’s new amnesty, businesses will have a $3,000-per-employee incentive to hire illegal immigrants over native-born workers because of a quirk of Obamacare.

President Obama’s temporary amnesty, which lasts three years, declares up to 5 million illegal immigrants to be lawfully in the country and eligible for work permits, but it still deems them ineligible for public benefits such as buying insurance on Obamacare’s health exchanges."

Under the Affordable Care Act, businesses with 50 or more employees are supposed to provide insurance coverage to their full-time workers, which goes into effect in 2015.  If they refuse, they are assessed a penalty.  But, because the newly legalized illegal immigrants covered by President Obama’s Executive Order can not sign up for the exchanges or receive subsidies, employers aren’t penalized for hiring them.

Did you get that?  If not, let me restate it this way: American jobs are now going to go to the 5 million legalized illegal immigrants, because they are $3,000 a year cheaper to hire than you!  Why?  Because they're exempt from the requirements of the Affordable Health Care while you, of course, Mr. and Mrs. American are not.

Federal Budget Expenditures

The following video provides a great "learning insight" to the budget categories by percentage of total federal expenditures.  You just might be surprised at what you learn!

Do You Know the Legal Ramifications of Your Bank Deposits?

I didn't think so!  Let me explain about the legal ramifications of those so-called deposits.  For nearly 200 hours, the courts have sanctioned an interpretation of the term "deposits" to mean "NOT" funds that you deliver for safekeeping but a "loan" to your bank.  Let me repeat that statement this way.  You bank balance is an "IOU" from the bank to you, even though there is no "loan contract and no required interest payment."  Yes, legally speaking, you have a claim on your money deposited in the bank, but practically speaking, you have a claim only on the "loans" that the bank makes with your money.  In other words, your money is only as "safe" as the bank's loan portfolio.

Keep an eye on your bank, just like you monitor your credit reports and scores.  How does one do that?  Well, check-out Veribanc, which, for a small fee, rates the overall financial health of financial institutions, and the FDIC.

Commonality Between Wall Street and Homeless Children?

The answer is easy.  Both are at an "all-time high," which is a very sad commentary about our society.  "1 in every 30 children" are homeless in the wealthiness country in the world. Our society has become totally absorbed with the underlying concept of "selfies." Where is the moral outrage for the less privilege ones in our society?  Very shameful, indeed.

Follow on Twitter

You can, also, follow me on Twitter @ Twitter.com/debauche.

Gap Fill on $SLV?

For those of you that might be looking for a "silver trade," you may want to look at the following chart on $SLV.  If so inclined, the instrument to consider is AGQ, which is leveraged at 2x the price of silver.  Currently, AGQ is at $39.80.

Update on $SLV's EMA Strategy

You May Want to Reconsider Purchasing that "Smart TV" for Christmas

Are We Really This Stupid?

$GLD (Gold): When Will the Decline End?

Parabolic Rise in the $INDU

You Think Now is a Good Time to Buy That House Because Mortgage Rates are so Low -- Well, You May Want to Think That Premise Over Again!

Ok, let's just look at mortgage rates and analyze what is happening.  Thirty-year rates are currently 3.75% on a national basis, which is still low by historical standards.  (See the following chart on 30-year mortgage rates.)  Now, let's look at a conventional $200,000 loan for 30 years at 3.75%.  This produces a P&I of $926.  How much house does $926 buy if rates go up to 6.36%, which was the 30-year rate as of October 2006?  [Why am I asking how much home does $936 buy?  Well, usually when individuals buy a home, they are concerned about what the monthly payment is going to be.]  Ok, the answer is $150,268.  So, you think housing has "bottomed?  Not so fast.  See, you have an imputed approximately 33% valuation increase in the price of houses today that will, over time, decline when rates rise.  In other words, just like bonds, when interest rates rise, prices decline. Therefore, the time to buy that house is when rates are historically high, not low, because then when rates go down you get the imputed price increase.  (This is your financial tip for the week.)

$SLV's Triple-Bottom Bearish Formation: Price Objective at $12.50

We have not seen $SLV at these price levels since March 2010!  The last time $SLV was at $12.50 was July 2009.  The $12.50 is based solely on the price objective of the "Spread-Triple Bearish Formation."  (See the "Green Circle.") 

Walmart Care Clinics

 

Now, this is true affordable health care, which I like a lot.  "An office visit costs $40, which Walmart

says is about half the industry standard and just $4 for Walmart employees and family members with the company’s insurance.  A pregnancy test will cost just $3, and a cholesterol test is $8.  Walmart Care Clinic will also treat chronic conditions such as diabetes."

What say, you, health-care providers?  Are you going to match these Walmart prices?  I doubt it.

Employment Has Never Been Better!

Say what! Well, according to the BLS, initial jobless claims just collapsed to the lows of April 2000. Therefore, employment has never been better. Right! Now, for the truth, which is right before your eyes in the following chart:

Point & Figure Chart of $IWM: Is $90 Realistic?

$INDU: Extremely Oversold

Civil Forfeiture/Civil Asset Forfeiture

This is how police justify stealing American citizens’ money.  And, yes, American citizen, this is legal and for real!  Therefore, never carry a lot of cash in your car.

After reviewing the above video, go to Michael Krieger's article entitled, "Common People Do Not Carry This Much U.S. Currency." 

Is IWM Signaling a Start to the Next Bear Market?

Four Seasons of the Kondratieff Wave

Kondratieff Wave is a fifty year cycle that turned into its Winter phase, or Stage Four, occurred in 2000, which is precisely at the bursting of the tech bubble.  So what can we expect going forward, since we still have another 36 years of this Winter Wave?  See the following chart.

China Overtakes U.S.A.

It should come as no shock that China has usurped the United States with the world's largest GDP. Sad, but true!  By the end of 2014, according to the International Monetary Fund, China will make up 16.48% of the world's purchasing-power adjusted GDP (or $17.632 trillion), and the US will make up 16.28% (or $17.416 trillion).

I wonder if you will hear this on your nightly news tonight.  No, because the preponderance of Americans are still living in yesterday's world.

What the Main Street Media Will Not Be Telling You About the Latest Employment Numbers

Great news on the employment front, especially if you are between 55 and 69. This group comprised the vast majority of the job additions for September 2014, 230,000. What about the prime worker group, which would be those aged 25-54?  They lost 10,000 jobs.  What?  Say, it is not true. Those grandparents are not being hired in those positions within the economy to make the so-called "big bucks." We are talking here the Wal-Mart greeters of the world. But, the media is claiming a major victory for the economy. Give me a break!  





By the way, here is the breakdown of job gains by all age groups since the start of the depression in December 2007: 5.5 million jobs "gained" in the 55-69 age group.  Not bad.  What about those prime workers between the age of 25-54? Negative 2.04 million.  Not so good!

Source: Zero Hedge

$SLV's 15/40-week EMAs

$IWM's EMAs

$SLV Has No Friends -- That's the Good News! Bad News, Still in Stage Four Bear

Bulls: Take Heed of the Following Chart!

iShares Russell 2000 ETF (IWF): Trend Change Ahead?

The iShares Russell 2000 ETF (IWM) seeks to track the investment results of an index composed of small-capitalization U.S. equities. Small-cap equities portend the direction of the market indexes in general, such as the DJIA and S&P 500.

The following chart of the IWM illustrates its 15-week EMA in relation to its 40-week EMA. If you are a long-term reader of my blog, you know the significance of this exponential moving average strategy (EMA).  For those of you that are new, the EMA strategy is as follows: (1) 15-week EMA > 40-week EMA -- market trend is up (Bullish), and (2) 15-week EMA < 40-week EMA -- market trend is down (Bearish).

As you can see from the following IWM chart, the 15-week EMA exceeds the 40-week EMA. Therefore, yes, the bullish trend is still in place. However, both the 15-week EMA and 40-week EMA appear to be rolling over (flattening out), which could be a precursor of a change in trend from bullish to bearish. I will continue to monitor this ETF very closely.

$SLV: Relief Rally?

$SLV at a Four Year Low! What's Next?

What's Up With Oil?

The price decline in oil is due the softness in the world economies  It really is that simple, pundits.  Just refer to the following chart.  But, what about the tensions in the Middle East, you opine?  As I stated, look at the chart and surmise the expectations for GDP growth forward.

Mortgage Rates Up, Home Purchase Activity at 20-Year Low

The following four charts are compliments of Zero Hedge.  As you will quickly notice, we don't have a housing recovery, in spite of what you hear from your real-estate broker.  However, never let a housing crisis go to waste without government intervention.  (I believe I have heard that phrase being used in the past.)  So, out of the House Financial Services Committee comes H.R. 5148 "Access to Affordable Mortgage Act of 2014."  That reads a whole lot like the "Affordable Health Care Act," doesn't it?  Well, do yourself a favor and do a Google search on this pending legislation; because if it is passed into law, we will definitely have another sub-prime mortgage debacle like 2008.

Now the charts,

 

Welfare Recipients Can Use EBT Cards for Marijuana

Now, let me get this right.  Welfare recipients can not use their EBT cards at liquor stores; but they can at marijuana dispensaries in those states that have legalized pot.  Yes, that is correct.  Congress in 2011 had passed laws that allowed the Department of Health and Human Services (HHS) to prohibit EBT benefits from being spent at vice institutions, such as liquor stores, strip clubs and casinos.  However, HHS did not interpret that authority to include marijuana shops.  No, I am not kidding, but I surely wish that I was kidding.  Call your Representative and Senators and tell them to cut this crap out immediately.

What Stock Market Bubble?

Up, up, and away!  Just look at the following chart of the S&P 500 by John Hussman.  Do you see any potential consequences to investors' wealth going forward?  Nah!  Everything is well.  Risk-on, investors. What investors fail to see is that the level of bearishness is close to a thirty-year low.

2017 Self-Driving Cadillac

The 2017 Cadillac model will feature “Super Cruise” technology that takes control of steering, acceleration and braking at highway speeds of 70 miles per hour or in stop-and-go congested traffic.  Now, I have a question for GM. If you, GM, can not get an ignition switch to work properly that has caused untold number of deaths, how are you going to convince the American public that you can create a system that can drive itself without killing more GM owners?

Government Publishes Detailed Instructions (700 Words) on How to Safely Roast Marshmallows

Come on now, I know what you are thinking.  But, really, it is not as easy as it looks.  That is why the government has provided us with a detailed, 700 words, instruction on how to exactly roast those marshmallows.  The key according to the article is to have a stick of at least "two and a half feet." However, the article does not stipulate a maximum length for the roasting stick.  (That just might be a good research study for the government to institute.)  The bottom-line for the perfect roasted marshmallow is to keep it directly out of the fire.  Bon Appetit.

Tax Inversion Deals

Warren Buffett's Berkshire Hathaway will finance approximately $3 billion for Burger King's planned acquisition of Tim Hortons, which is located in Canada. Of course, there is nothing wrong with financing this  acquisition by Buffett. But, this is when this financial transaction gets very interesting, because Buffett is backing Burger King, who will move its headquarters from Florida to Canada where corporate taxes are much lower. How low? The U.S. corporate tax rate is 39.1%, but 26.5% in Ontario, Canada, where Tim Hortons is based. (The 39.1% nominal corporate tax rate in the U.S. includes national, state, and city-level tax rates, which is the highest across all 34 Organization for Economic Cooperation and Development (OECD) member countries. Canada's, by comparison, is 26.5%.)

This "inversion deal" will allow Burger King to shift its entire corporate tax liability from the United States to a much lower tax cost country (Canada).  Now, there is nothing wrong with trying to reduce one's tax bill, but Buffett has supported President Obama's push to increase taxes on the wealthiest individuals while making deals to reduce taxes on his own entities. I guess the old adage applies here to Mr. Buffet that states, "Do what I say, not what I do."  

A simply solution would be for the United States to reduce its corporate tax rates to be more competitive in the world environment. That would be one great way to stop these "Inversion Deals." What say, you?

What Will $100 Buy You in Your State?

The following map shows the real value of $100 in each state.  (If you live in AL, AR, MO, MS, SC, and TN, you better stay there!  On the other hand, if you live in AK, CA, HI, NY, and DC, you may want to pack your bags and move out!)

What's Up with the 10-Year TSY Note Rate?

Spread of the Caliphate: Islamic State (Part 5)

Cisco Epitomizes Wall Street’s Greed at the Expense of Main Street’s Misery

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Since 2011, Cisco has repurchased $21.9 billion of its stock and fired has fired 21,000 of its Fed's “Zero Interest Rate Policy (ZIRP) allowing Cisco, and companies like it, to issue debt at virtually zero, which allowed them to buy back it shares. 

Spread of the Caliphate: Islamic State (Part 4)

Spread of the Caliphate: Islamic State (Part 3)

Russian Humanitarian Armed Forces

Is that really a tank disguised as a Red Cross vehicle heading to Eastern Ukraine?

Spread of the Caliphate: Islamic State (Part 2)

Spread of the Caliphate: Islamic State (Part 1)

CNN May Need to Provide Geography Lessons for its Reporters

Boost FICO Scores by Changing How It's Calculated

Tens of millions of individuals will now be eligible to get additional credit to take on more debt to buy that new car, home, or just anything, because Fair Isaac Corporation (FICO) is about to change how your FICO score is calculated.  (Can anyone say sub-prime mortgage debt?)  According to the Wall Street Journal, Fair Isaac will stop including in its FICO credit-score calculations any record of a consumer failing to pay a bill if the bill has been paid or settled with a collection agency.  Given this revision alone, some borrowers' FICO scores could increase by at least 50 points.  Lenders, for one, better be caution about these new FICO scores.  If these lending institutions do increase loans of any type, based on these revised scores, they better start increasing their "loan-loss provisions."

You Know the Economy is in Bad Shape When Americans Can Not Even Afford to Eat Off McDonald's Dollar Menu

Year over year domestic July sales for McDonald's Corporation declined 3.2%, which is the ninth month in a row for declining same store sales.  (See the following chart.)  If Americans are spending less on food, what else are they not buying?  This does not portend well for the economy.  But, then again, for those of you that I have been following my blog, you already do that the economy is in the "tank" in spite of what the Wall Street pundits are saying.

Let's Bring Back the Good Old Days (1949-79)

Those good old days were when the middle-class, "Main Street," actually benefited more than "Wall Street." By Main Street, I am referring to the "bottom 90%.  On the other hand, Wall Street is represented by the "top 10%."  Since 1982, it has been all about the growth discrepancy between Wall Street and Main Street, with the major advantage to Wall Street by a wide margin.  (See the following bar graph.)

Ebola Terror in London as Passenger Dies Getting off an African Flight

i24 News

i24news is an international 24-hour news and current affairs television channel based in Jaffa Port/Tel Aviv, Israel. 

Wal-Mart is Hiring. Guess Who?

Old Workers (Wal-Mart Greeters) Hit Record High

As the following bar-chart illustrates (Zero Hedge), while all other age groups posted a jobs uptick for July 2014, it was those in the 25-54 age group that saw a 142,000 jobs decline for July.  (Historically, this age group is the most important and has the highest earnings.)  Those in the 55-69 age group saw an increase of 159,000 jobs. Welcome to the "NEW" normal.