I was ashamed of our nation last night.  I was ashamed of our President.  I was ashamed of our Congress.  I was ashamed of the Democrats.  I was ashamed of the Republicans.

Oh how far our nation has fallen in its sin and deceit.

For those of you who may have missed it, I would highly encourage you to take the time to view the State of the Union speech in its entirety.  You must understand the total, unrepentant depravity that exists in our highest offices.

State of the Union

I sincerely wish that I could say the Republicans did better.  Instead, they put on as big of an act as the Democrats.  The GOP response should be viewed as well.  Notice the crowd behind Gov. Bob McDonnell.  He’s got old, young, white, black, Asian, men, women, and military thrown in there.  The running joke is that the Mexican guy with the sombrero ran late.  Is this what our nation has come to?  Posturing with empty rhetoric?

GOP Response to State of the Union

To top it all off, we had House Speaker Nancy Pelosi go off the deep end today.  Remember, she is second in line to the Presidency of the United States.  Here is what she had to say about the battle over the Health Care bill:

"We'll go through the gate, if the gate is closed we'll go over the fence, if the fence is too high we'll pole vault in, if that doesn't work we'll parachute in, but we're going to get health care reform passed for the American people."

Nancy Pelosi Pole Vault

If all of that weren’t disgusting enough, we also had the US Senate vote 70-30 to reconfirm Fed Chairman Ben Bernanke this afternoon.  They were too scared and spineless to do anything else.

Finally, the US Senate voted 60-40 today to increase our nation’s debt-ceiling by another $1.9 TRILLION dollars.  That’s another $25,000 of future labor required of every family of four in the United States.  It’s actually much, much worse than that – since a majority of the inhabitants of our nation pay no income tax whatsoever.

Let me state this simple fact again.  The Federal government has only three ways that they can bring in revenue to spend on things.

1) Taxation of the citizenry.  Tax receipts to the Federal government are down 16% year-over-year: Figures on government spending and debt. 

We see that fiscal year 2008 receipts were a little over $2.5 trillion dollars, versus 2009 receipts which dropped to around $2.1 trillion.

We also see that fiscal year 2008 outlays (amount spent) were just under $3 trillion, while 2009 outlays were over $3.5 trillion.

Tax receipts are not going to sustain the massive increase in spending that the Federal government is undertaking.

2) Issuance of new US Treasury securities (bills, notes, and bonds).  This is the method that the government is currently using in an effort to stem the credit destruction that is occurring all throughout our nation and around the developed world.

3) Stealing the money from Federal government “trust” funds, and replacing those stolen funds with IOUs.  The government has been famous for using this tactic to fund their Marxist policies (including the Republicans).  There’s only one “slight” problem.  The “trust” funds are now empty.  There are more outlays being paid out than there are receipts coming in.  This includes Social Security, which was supposed to still be solvent for at least another six years.

The Federal government is trying to pass the Health Care bill in order to establish a new gargantuan “trust” fund – composed of 17% of our nation’s GDP.  This would help to fund their thieving practices for quite a number of years to come.  But they don’t have it in hand yet.

Conclusion: Given the fact that the Federal government is broke, and can only enslave us yet further in order to fund any project, then why are they all prancing around in their luxurious lifestyle?  Shouldn’t they be hanging their heads in shame as they come back to their various communities and report back to their supposed REAL BOSSES?

How long America?  How long?
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Watch for these indexes to drop:

Chinese Shanghai Composite Index: 2,994.14 (change of 8.35% from July 20, 2009 base value of 3,266.92)
Shenzhen Stock Exchange Component Stock Index (SSE): 12,120.48 (change of 9.42% from July 20, 2009 base value of 13,381.22)
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Here are today’s numbers for the economic indicator:

1) Gold = $1,085.40
2) Silver = $16.23
3) Dollar Index = 78.90
4) Oil = $73.64
5) S&P 500 Index = 1,084.53
6) 3-month Treasury Bill yield = 0.07
7) 3-month OIS = 0.15

HEI = 31.85

(A value of under 100 indicates deflation, while over 100 indicates inflation – as referenced to Sept. 12, 2008…the day before Lehman Brothers collapsed)



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Here are the numbers for the day:

Dollar Index adjusted indexes:
Dow = (10,120.46) x (0.7890) = 7,985.04
S&P 500 = (1,084.53) x (0.7890) = 855.69
Nasdaq = (2,179.00) x (0.7890) = 1,719.23

3-month Treasury: 0.07

2-year Treasury: 0.86

10-year Treasury: 3.63

30-year Treasury: 4.55

2-yr vs. 10-yr Spread (Target > 273): 277 basis points – (Danger Zone)

2-yr vs. 30-yr Spread (Target > 369): 369 basis points – (Danger Zone)

3-month LIBOR: 0.25

3-month EURIBOR: 0.66

3-month OIS: 0.15

TED Spread: 18 basis points

LIBOR/OIS Spread: 10 basis points

Dollar Index: 78.90

Volatility Index: 23.73

JPY-EUR Exchange Rate (Target < 115): 125.5586

JPY-GBP Exchange Rate (Target < 145): 145.0213

JPY-USD Exchange Rate (Target < 90): 89.905 – (Danger Zone)

USD-EUR Exchange Rate (Target < 1.25): 1.3966

USD-CNY Exchange Rate (Target > 7.0): 6.8268

Warmly,

Brad

Comments or questions?  brhamill@hamill.com

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