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The economy, over which Historic Taxcutter George is president, is booming. Not in the traditional sense of the word, "booming", when applied to economics....but in the "blown into smithereens" sense of the word.
Federal Reserve Chairman Ben Bernanke said Thursday that a host of economic problems, including the severe housing slump, will cause business growth to slow noticeably in coming months. Link
FED guys are usually careful about the public words that they say. Greenspan, for example, spoke in a foreign English style that was totally unintelligible. Nobody ever knew what the hell Alan was talking about...that's how careful he was.
Now, let's assume Bernanke is at least being somewhat careful in the words he chose to say. Presuming "host of economic problems", is being careful....then ol' Bennie is warning us to batten the hatches because a hell of an economic storm is headed our way.
"Business growth....will .....slow noticeably...". This is important because Bernanke didn't just say, "hey, business growth will slow". No, he used "noticeably".....and that means.....we're not going to miss it. We're not going to miss it because it's going to hit us head-on. Lower CD and money market rates, harder to borrow, fewer jobs, more layoffs, more bankruptcies, inflation, extremely high energy costs....
Then.... let's look at how our money is doing. Most of us don't have much of it....but what we do have .....is dropping in value every day.....
Currency traders gave the U.S. dollar a thorough pounding Wednesday and pushed the value of the euro to $1.47, the highest on record. The Swiss franc rose to a 12-year high against the dollar, and the pound climbed to the value it reached 26 years ago.
Let's stir in, just for the hell of it, what one Euopean guy said....
"We are experiencing among our clients an awakening that the United States is in big trouble," said Erik Nielsen, chief Europe economist at Goldman Sachs. "It is not just the mortgage market." Link
If indeed, investors are "awakening" to a U.S. that is in "big trouble" and "not just in the mortgage market".....what do you think investors will do? That's right.....they'll make it worse by emptying out their positions in "troubled" U.S. investments.
One further question.....wanna' guess who'll walk away from this in fine shape and who will get all this "trouble" pounded up their wide stances?