While our mind is preoccupied with Europe, nobody seems to remember the mess that USA is in. At least Europe is trying to get its shit together. They have much less debt to GDP compared to US of A. Just look at your backyard swamp and you will see the dragon getting stronger.

 US spend about $ 3.8 Trillion in a year and takes in approx. $ 2.15 trillion in various shapes and forms. That leaves a gaping hole of $ 1.65 trillion a year. 

And the official debt is about $ 16 trillion. In that official debt, we have not, I repeat not, included any unfunded liability for pensions to Government employees, Medicaid and Medicare and Social Security. The estimates of that unfunded liability vary from $ 66 trillion to $ 122.1 Trillion. For e.g. Uncle Sam has promised about $ 700,000 in pension and health benefits to its retired civil servants and so far the only source of that fund is IOU. Now add another $ 17 trillion to that coming from Obamacare. Before we start throwing Millions and Billions and Trillions, do we even know how much they represent? OK. Here we go:

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Public Relations. Implicit in that term are two relationships not just one. The public’s relationship to you, and your relationship to the public. Although the meanings are joined at the hip that doesn’t mean one of them can’t be the antithesis of the other simultaneously. Nor does it mean that if you do X here…Y will result there. It’s not a zero sum game. They’re not locked in any correlated fashion. There can also be exponential adverse or favorable reactions to each other irregardless of making any sense.

That’s why what you say, when you say, and how you say it the first time you look into a camera, write an op-ed, or even argue with your spouse matters. Only seizing the moral high ground immediately will help protect you when the pikes and torches are being gathered. It might not be enough, but it’s the only salvo that has the best chance of providing any salvation. Whether it’s for the public itself, or your own dignity, knowing what you said was truth in the end might be all you’ll have.

You must to be able to look yourself in the mirror first warts and all and say, “I’m telling the truth” regardless if anyone believes you. If not, no matter how much make up one puts on eventually the truth will see daylight. Or worse you’ll be grilled by so many, for so long, no amount of special effects will be of help. Metaphorically speaking customers leaving you never to return is really not that different from an angry mob picketing your doors. Both produce the same results.

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Further to my last weekly market update, this week's post will take on a different format. This may be a more useful and simple format for me to use on a weekly basis instead of the previous lengthy ones that I've been reporting on since the beginning of this year, in order that I may compare overall market and sector strength/weakness, and to assess appetite for risk during the past week relative to the long, medium, and short terms.

Below are a series of chartgrids of the 4 Major Indices and 9 Major Sectors showing Monthly, Weekly, and Daily timeframes. Each chart contains a set of Bollinger Bands, a 50 sma (red), and a 200 sma (pink). Generally, the mid-Bollinger Band (20 sma) will represent the "MEAN" to which price will revert as markets become overbought or oversold at their upper and lower Bollinger Bands. Price above the mid-Bollinger Band will be considered "BULLISH." Price below the mid-Bollinger Band will be considered "BEARISH." A green candle will depict "RISK ON" and a red one will depict "RISK OFF."

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