October 28, 2010 at 7:55 am
If you're interested, here are some sources I consult regularly to determine which way the economic winds are blowing:
http://money.cnn.com/2010/10/28/news/economy/quantitative_easing_consumer_impact/index.htm - This article explains how the Federal Reserve is getting ready to make you spend more money for food, gasoline, and other consumables.
http://money.cnn.com/news/economy/index.html - Notice the 7 economic indicators on the upper right side of the page. I pay close attention to these.
http://money.cnn.com/data/bonds/index.html - Yields on U.S. Treasury Bonds.
http://money.cnn.com/data/commodities/index.html - Commodity futures prices. These prices have a direct bearing on your family's expenditures for consumables.
http://finance.yahoo.com/intlindices?e=americas - Major world stock market indexes.
LC
October 28, 2010 at 8:48 am
Americans live in a unique and interesting time.
We have the worst possible economic scenario:
1. Deflation of assets
2. Inflation of consumables
Ultra low interest rates are creating another stock market bubble. Stock prices are highly inflated and not justified by any respected measurement.
And the last great bubble, the debt bubble, is close to bursting. This bubble must burst for the U.S. and world economies to bottom. This bubble includes not only consumer and business debt, but most importantly, sovereign debt (nations). We don't have a liquidity crisis as we were told 2 years ago when the banks were bailed out. We have an insolvency crisis.
U.S. Bonds (our sovereign debt) have seen the longest bull market in the country's history, 30 years. That is coming to an end. When it finally ends, there will be a huge sell-off in bonds (debt) of all nations and it will create immense economic carnage, since the U.S. Dollar is the world's reserve currency.
LC
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