All of the Soft markets came under macro pressure on Monday. The weight of Italian concerns on the Euro led to dollar strength and severe declines across the board. Cotton was limit down during the entire “traditional” session, trading synthetically as low as 10550 in CTZ. KCU settled 259.05, after reaching a low of 256.10 for the day. As 100 degree heat will be the story line across much of the nation, but the dollar is up sharply again this morning. Can the dollar continue to rally? That seems the key.

The debt situation overseas, rising inflation in China, and the U.S. deficit issue has caused a sell-off across the boards. To me this shows how little the President of the United States has and how powerful Congress is. If the United States loses its credit rating than China could pull out of the treasuries it owns. For the President, Geithner, and Bernanke having to speak the situation is getting worse. Earnings is not a focus because we all know many companies are financially sound after being able to save for the past 3-4 years. Could corporate America be taking over the government in the future? Could the U.S. be like the Roman empire? After all isn’t Greece asking for the private sector to bail them out?

I am sure everyone has seen the job numbers today. Nonfarm payrolls rose by 18,000 which is the weakest announcement since September, below the 90,000 rise that economists expected. The economy has to create between 125,000 -150,000 new jobs a new month to show the new work force entering the market. The government is looking toward the private sector to bailout the world. They want insurance companies, hedge funds, etc. to buy the treasuries when the debt ceiling is raised. They want this sector to jump in and help Greece. Oh, and let’s not forget NASA wants the private sector to help them too. Sounds like Desperation if you ask me.

So the current administration wants to add taxes to those who work hard and are successful. What is this Robin Hood! This might make people not attend college for fear if they do make a good living that  they may not make as much as in the past. Sure, lets tax those that are spending and force people to leave the country. How come no one is asking about the stress test on banks? It looks as though we are so concerned with China and Europe that we forgot about how the banks are holding up. We know they are cash rich from laying people off, not giving loans out, etc.