Economy 2010: From the Scandalous Known Past to the Uncertain Future

 

Comments (10)

New

 

A very well written article

 

Posted, Thursday, January 7, 2010 10:00 pm

 

This was a very well written article and it serves a most useful purpose. As you know I appreciate your writing. You are not writing for an academic audience, even though the scholarship is there....

Andrew

 

New

 

The Plight of Retirees

 

Posted, Thursday, January 7, 2010 12:42 am

 

As one of those retirees getting 0.1 % on my money, i am desperately awaiting that increase in interest rates.  i have been waiting and planning on it since the U.S.'s invasion of iraq.  It has not happened yet.  I know it, logically, must.  Yet I know that China continues to support the U.S. Treasury bond market. It could be 2012 or 2017 before we see those double digit treasury rates again.

Joe

 

Answer by R.T.:

Interest income has vanished over the last few years. Long-term Treasury rates are at 4.65% now, and are expected to rise 1.0% this year and next.

Non-taxable muni-bonds are giving a fair return, but one has to go 10 years+.  Another alternative is some high-paying dividend stocks.

 

To pre-order The Code for Global Ethics, by Rodrigue Tremblay, click: The Code for Global Ethics, Ten Humanist Principles

 

 

New

 

Looting the economy

 

Posted, Thursday, January 7, 2010 2:05 am

 

I enjoyed your last piece!

Was Obama's little-publicized Christmas Eve executive-decree bankrolling of Fannie Mae and Freddy Mac to the tune of an additional $1,000,000,000,000.00 (one-trillion dollars) the biggest bailout yet--with no legislative input? Here's one analyst that would agree. He's very understated but stay with it and pay attention to what he's saying: http://www.forextv.com/Forex/Video.jsp?channel=276&movieie=61345

But wait, this is small potatoes compared to the latest bailout scheme being "stealthed" through Washington D.C. by Dem. Rep. Barney Frank and his merry band of financial pirates.

Yes, that's $4,000,000,000,000.00 (four-trillion dollars). "Days of awe" indeed--for the "too big to fail" banks and other financial "Madoffs"!

Tom

 

 

New

 

Another excellent article

 

Posted, Thursday, January 7, 2010 9:31 pm

 

I have found your recent articles very insightful. I am most interested about WWII and have written articles about it. This year will be 65 years since this most damaging war to Western civilization. It ought to be commemorated given the path of the U.S. military and NATO.

Walter

 

 

New

 

Small Communities

 

Posted, Wednesday, January 6, 2010 8:47 pm

 

You say that “This time the crash will be initiated in the huge bond market, will spread to the commercial loan market and ultimately to the stock market, and then will further crush the real economy in a way that few understand today but will learn the hard way in the coming years.”

I am interested in what you write. It seems that you can predict how the economy will unfold. Are you aware of any measures that small communities can take to make a difference to what will transpire?

A reader

 

Answer by R.T.:

I am sorry if I gave you the wrong impression that I can predict the future. —I can't.

What I can do is analyze the consequences that logically follow from certain choices and policies, according to economic laws.

Small communities, and states for that matter, are presently seeing big drops in tax revenues, as property values decline and contract. Raising tax rates is not an option because taxpayers also have lowered incomes. Local governments have no choice but to economize and streamline their operations, i.e. raise productivity.

 

To pre-order The Code for Global Ethics, by Rodrigue Tremblay, click: The Code for Global Ethics, Ten Humanist Principles

 

 

New

 

An informative article

 

Posted, Wednesday, January 6, 2010 3:21 pm

 

This was an informative article. What are needed now are more hard-hitting articles to wake people up. Ben Bernanke is misinformed and Tim Geithner is misplaced, to put it politely. Neither is self-directed. Rather they are pawns in a larger game that you can only touch from a distance because of your position.

Ray

 

 

New

 

The Costs of Wars

 

Posted, Wednesday, January 6, 2010 3:32 pm

 

As an interested reader I was refreshed by your article and thank you for writing so lucidly on the subject matter – this is empowering for ordinary people like myself.

I would be interested to know how you see the impact of the financial cost of the new wars ‘without end’ on the various trends which you discuss. Could it be that this, and the other factors, is rapidly leading us into a situation akin to recent times when science was forced to drastically re-calculate (and bring forward) critical timescales relating to anticipated trends in global warming? Is this view far too pessimistic?

Rob

 

Answer by R.T.:

U.S.-led permanent wars cost the U.S. $110 billion plus a year in direct costs, plus of course a large chunk of the Pentagon's basic annual budget of $660 billion.

These wars consume a lot of energy and are a subtantial contributor to pollution. I am no expert in climate warming, but this is bound to have an impact.

 

To pre-order The Code for Global Ethics, by Rodrigue Tremblay, click: The Code for Global Ethics, Ten Humanist Principles

 

 

New

 

An understandable article

 

Posted, Wednesday, January 6, 2010 11:59 am

 

I read your new article today. I'm not one who normally believes in conspiracy theories, but I think this is a 100 plan going back to 1913 by the Fed to ultimately dismantle the U.S. as a super power and institute a One World Gov't. There are many articles & videos online about this as I'm sure you're aware. I also liked very much how understandable your article was to non financial experts like myself. Thank you again and keep the great articles

Coming.

Susan

 

 

New

 

Questions

 

Posted, Wednesday, January 6, 2010 11:59 am

 

I just read a great article you wrote.

I have a question and/or new article suggestion. What does this mean to us? I'm extremly concerned about the coming financial storm and I'd like to know how to prepare my family to get through it. I just don't see any safe investments, currencies, properties, etc.. Maybe precious metals and gemstones physically in my possession but I have my concerns there too. There are a lot of folks who see this spending spree coming to a head but not many discussing what to do about it. What say you?

Bill

 

Answer by R.T.:

It is not easy to navigate financially in those troubled waters.

One has to be careful and not be too deep in debt. There are a few basic economic facts to keep in mind. Today's government deficits will be tomorrow's taxes and one must prepare for that.

If there is inflation in the coming years, this means fixed income investments should not have a maturity much longer than 5-6 years. Some good dividend paying stocks can also be a protection against inflation.

As for real estate, this year and next should be the bottom of the 18-year real estate cycle. In general, this should not be a time to sell, unless forced to, but a time to buy.

 

To pre-order The Code for Global Ethics, by Rodrigue Tremblay, click: The Code for Global Ethics, Ten Humanist Principles

 

 

New

 

Wow! Super Article!

 

Posted, Tuesday, January 5, 2010 9:13 am

 

Je veux vous dire que vos articles sont particulièrement intéressants. Je partage entièrement vos points de vue sur l'imminente prochaine crise financière et de devises.

Yves

 

 

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