Speaker Boehner on Averting the Fiscal Cliff (Full Video/Text, 11/7/2012)

Debt deal 2.0

Here are quotes from House Speaker John Boehner's statement on the fiscal cliff from earlier today. The full transcript and video are after the jump.

There is an alternative to going over the fiscal cliff, in whole or in part.

It involves making real changes to the financial structure of entitlement programs, and reforming our tax code to curb special-interest loopholes and deductions.

By working together and creating a fairer, simpler, cleaner tax code, we can give our country a stronger, healthier economy.

A stronger economy means more revenue, which is what the president seeks.

Because the American people expect us to find common ground, we are willing to accept some additional revenues, via tax reform.

And for that reason, in order to garner Republican support for new revenues, the president must be willing to reduce spending and shore up the entitlement programs that are the primary drivers of our debt.

For purposes of forging a bipartisan agreement that begins to solve the problem, we’re willing to accept new revenue, under the right conditions.

What matters is where the increased revenue comes from, and what type of reform comes with it.

Let the games begin...

S&P Falls After Obama Reelected; Fiscal Cliff, Eurozone Growth Risks Remain ($SPY $SPX)

The S&P 500 sold off after President Obama was reelected. Now the main issue on everyone's mind is the U.S. fiscal cliff, which would raise taxes, cut government spending, and potentially kill economic growth if there is no deal between democrats and republicans to lighten the blow.

Today, the S&P 500 ($SPX) closed at 1394.53, down 2.37%, and broke through the uptrend line from October 2011. So there are officially cracks in the foundation. S&P 500 is now on its way to test the 200 day moving average, so see how it reacts there. Look how the S&P reacted at the 200dma since the previous debt crisis and downgrade in 2011.

source: stockcharts.com

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Is Pakistan's Paranoia Pushing it Into a Nuclear War with India? - Guest Post

Short Range Surface to Surface Multi Tube Missile
Hatf IX (NASR) (Source: ISPR.gov.pk)
Guest post by Felix Imonti for OilPrice.com (image added separately)

Is Pakistan's Paranoia Pushing it Into a Nuclear War with India?

The possibility of a nuclear war between Pakistan and India grows every day. If the Pakistanis do not bring under control the terrorist groups in the country and resolve the conflicts with India, it is not a matter of if it will happen, but when.

There have been few achievements to celebrate in the sixty-five year history of Pakistan and that has made the success of the nuclear program central to the national identity. This is especially true for the military that receives a quarter of the budget and is the only strong national institution.

$FXI/$SSEC Ratio Makes a New High (Nov 5, 2012)

This post turned into a crazy ratio post, so hopefully it makes sense. The iShares FTSE China 25 Index Fund/Shanghai Stock Exchange Composite Index ratio (FXI/SSEC) hit a new six year high of 0.01804 on November 1 after piercing through the 2006 and 2008 highs of 0.0174. The ratio fell significantly after hitting those levels. So are we in for a ratio correction?

Since FXI holds a bunch of Chinese H-shares (mainland Chinese companies that trade on the Hong Kong Stock Exchange and are denominated in Hong Kong dollars), are recent currency moves related to this enormous gap between FXI and the Shanghai Stock Exchange Composite Index? As you can see in the charts below, during the past three months, the Hong Kong Dollar fell hard against the Chinese Yuan (HKD/CNY), and the U.S. Dollar fell against the Hong Kong Dollar (USD/HKD).

Tom DeMark Sees Major S&P 500 Sell Signal Near, Expects 12-17% Decline (10/25/2012)

source: StockCharts.com
Tom DeMark, founder of Market Studies and creator of the DeMark Indicators, told CNBC's Fast Money on October 22 that "the overall trend of the market is definitely down and we're going to see a very long and extended decline. We've made the highs for the year." On Bloomberg TV on October 25, DeMark said the S&P would decline by "12 to 17%."

Marc Faber of the Gloom Boom & Doom report expects the S&P 500 to fall by 20%. So prepare yourselves.

But during the interviews, DeMark mentioned that the S&P 500 cash index ($SPX) didn't generate a "13" top indication yet like the Nasdaq, Russell, and S&P futures did in September and October.