The beginning of the end of any nation

An economics professor at a local college made a statement that he had never failed a single student before, but had recently failed an entire class. That class had insisted that congress food security bill will worked and that no one would sleep without food .

The professor then said, "OK, we will have an experiment in this class on congress plan". All grades will be averaged and everyone will receive the same grade so no one will fail and no one will receive an A.... (that means tax collected from us will be used for food security bill expensed. i.e equally distribution ).

After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy. As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D! No one was happy. When the 3rd test rolled around, the average was an F.

As the tests proceeded, the scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

To their great surprise, ALL FAILED and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great, but when government takes all the reward away, no one will try or want to succeed.

These are possibly the 5 best sentences you'll ever read and all applicable to this experiment:

1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.

2. What one person receives without working for, another person must work for without receiving.

3. The government cannot give to anybody anything that the government does not first take from somebody else.

4. You cannot multiply wealth by dividing it!

5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

Real story of American Dollar v/s Indian Rupee

An Advice to all who are worrying about fall of Indian Rupee

Throughout the country please stop using cars except for emergency for only seven days (Just 7 days)
Definitely Dollar rate will come down. This is true. The value to dollar is given by petrol only.This is called Derivative Trading. America has stopped valuing its Dollar with Gold 70 years ago.

Real story of American Dollar v/s Indian Rupee

Americans understood that Petrol is equally valuable as Gold so they made Agreement with all the Middle East countries to sell petrol in Dollars only. That is why Americans print their Dollar as legal tender for debts. This mean if you don't like their American Dollar and go to their Governor and ask for repayment in form of Gold,as in India they won't give you Gold.

You observe Indian Rupee, " I promise to pay the bearer..." is clearly printed along with the signature of Reserve Bank Governor. This mean, if you don't like Indian Rupee and ask for repayment,Reserve Bank of India will pay you back an equal value of gold.(Actually there may be minor differences in the Transaction dealing rules, but for easy comprehension I am explaining this)

Let us see an example. Indian petroleum minister goes to Middle East country to purchase petrol, the Middle East petrol bunk people will say that liter petrol is one Dollar.
But Indians won't have dollars. They have Indian Rupees. So what to do now? So That Indian Minister will ask America to give Dollars. American Federal Reserve will take a white paper , print Dollars on it and give it to the Indian Minister. Like this we get dollars , pay it to petrol bunks and buy petrol.

But there is a fraud here. If you change your mind and want to give back the Dollars to America we can't demand them to pay Gold in return for the Dollars. They will say " Have we promised to return something back to you? Haven't you checked the Dollar ? We clearly printed on the Dollar that it is Debt"
So, Americans don't need any Gold with them to print Dollars. They will print Dollars on white papers as they like.

But what will Americans give to the Middle East countries for selling petrol in Dollars only?

Middle East kings pay rent to America for protecting their kings and heirs. Similarly they are still paying back the Debt to America for constructing Roads and Buildings in their countries. This is the value of American Dollar. That is why Many say some day the Dollar will be destroyed.

At present the problem of India is the result of buying those American Dollars. American white papers are equal to Indian Gold. So if we reduce the consumption of petrol and cars, Dollar will come down

Momentum: By Definition it is Hard to Stop

Momentum:

1. the quantity of motion of a moving body, measured as a product of its mass and velocity.
2. the impetus and driving force gained by the development of a process or course of events.

People trying to manage trend changes are by definition fighting momentum, which feeds on an established trend with powerful force.  A premium service I use and otherwise depend upon for analysis of conventional US stocks and sectors (i.e. non-precious metals, non-resources, non-global), [XYZ Premium, name omitted due to wider publication], provided a chart yesterday showing the S&P 500’s breakout to all time highs noting "And to think there are still people calling this a cyclical bull within a long-term secular bear market!"
What [XYZ] forgot to mention is that there was an equal and roughly opposite breakout to fresh lows in 2009, that took the S&P back to 1996 levels.  And to think there are still some people calling this a secular bull after an 11-year sideways consolidation of the previous secular bull!
Equal and opposite; that has been a theme lately and we will keep it front and center.
I was somewhat disappointed to see them write that sentence.  That is because I pay them a sum of money not to feed me contrary indicators and signs of hubris.  But a bigger point is that the surety with which [XYZ] made its trend following statement shows how strong the backdrop is for the regular stock market and against the bear case for one, and the precious metals (firmly an anti-market now) for another.

So here once again is a chart that adds some definition to the picture.  Yes the S&P 500 is at all-time highs and this trend should not be fought without ongoing risk management in light of the old saying that "a market can remain irrational for longer than you can remain solvent."  The market makes the rules, not the individual.
The chart shows the 2009 lower low and a nice upside breakout to all time highs today.  So what?  Here I once again pull out one of my biggest errors, which was the targeting of 888 on the HUI gold miner index based on a similar upside ATH breakout in 2010.  I don’t make grand statements of surety like the one quoted from [XYZ] above, but I thought it was a valid target and it was not.  Period.
The chart also shows the rising monetary base in lockstep with the current momentum-fueled stock rally.  BASE was launched through TARP, ZIRP, QE’s 1, 2 & 3 and ongoing Fed policy.  As noted last week, stock market bulls are living in a dream and living large I might add.  But it is a creation of policy.

The S&P is plotted along with the personal savings rate of the average US consumer.  Savings naturally tend to spike during market liquidations and the plucky consumer dusts himself off and goes all in during bull markets.  He is currently at 3.2 down from 8+ during the 2008/2009 liquidation and 8- during the Euro crisis and associated dislocations.  It’s a new secular bull market after all!

To make sure we do not cherry pick our information let’s view the S&P 500 as it rises, rightfully, in lockstep with corporate profits.  So on a conventional valuation basis, the stock market is simply following its ultimate fundamental data point higher.
A point I have been trying to make all along is that the stock market is fine and the bulls are right.  But that is only if you are willing to sleep soundly in the notion that money is going to continue to be manufactured with the express mission of keeping the fundamentals on their upward momentum trajectory (chart 1).
The bulls have it all and there is no reason to fight this momentum when operating by conventional metrics.  But there is nothing organic or natural about the bull market unless you consider the manipulation of debt and associated rates of interest to be natural.  If so, have at it.  Have a ball.

WE ARE UPGRADING THE SITE AND APPS

TO THE VISITORS WE ARE UPDATING THE SITE THE LINKS AND THE PAGE,

HOPE YOU LIE IT

ADDING TO MOBILE APPS FOR YOU LOVE OF MOBILE AND ITS BECOME A HANDY.

Are the odds in your favor for an upmarket in July?

During the past four years the month of July has generally been a positive one for the U.S. stock market. In 2012 the market witnessed its smallest percentage gain of just 1.25% for the month of July. As you can see during the past four years the general trend has been positive for the market in July, but the percentage gains have been decreasing annually since '09. During the month of July, the average gain over the last 4 years has been a very positive 3.34%. With our monthly trade triangles still in a positive mode I expect the month of July to be flat to slightly positive for stocks.
Here are the monthly returns for July, beginning in 2009.
JULY '09 + 7.41%
JULY '10 + 6.87%
JULY '11 - 2.14%
JULY '12 + 1.25%
LAST WEEKS WINNERS AND LOSERS FOR THE WEEK ENDING 7/05/13
BIGGEST WINNERS
Crude Oil +7.08%
NASDAQ +2.09%
S&P500 +.1.59%
DOW + 1.51%
BIGGEST LOSERS
EURO/USD - 1.34%
GOLD -0.47%
CRUDE MAJOR TRADE TRIANGLE TREND - Positive
INTERMEDIATE TRADE TRIANGLE TREND - Positive
SHORT-TERM TRADE TRIANGLE TREND - Positive
RESISTANCE - 105.00
SUPPORT - 98.00
DOW MAJOR TRADE TRIANGLE TREND - Positive
INTERMEDIATE TRADE TRIANGLE TREND - Negative
RESISTANCE - 15,340
SUPPORT - 14,850
S&P500 MAJOR TRADE TRIANGLE TREND - Positive
INTERMEDIATE TRADE TRIANGLE TREND - Negative
RESISTANCE - 1650
SUPPORT - 1600
NASDAQ MAJOR TRADE TRIANGLE TREND - Positive
INTERMEDIATE TRADE TRIANGLE TREND - Negative
RESISTANCE - 3490
SUPPORT - 3400
GOLD MAJOR TRADE TRIANGLE TREND - Negative
INTERMEDIATE TRADE TRIANGLE TREND _ Negative
SHORT-TERM TRADE TRIANGLE TREND - Negative
RESISTANCE - 1266
SUPPORT - 1160
EUROUSD MAJOR TRADE TRIANGLE TREND - Positive
INTERMEDIATE TRADE TRIANGLE TREND _ Negative
SHORT-TERM TRADE TRIANGLE TREND - Negative
RESISTANCE - 1.3000
SUPPORT - 1.2800
Have a great trading day,