Q3 2009
By John Schroy, on February 22nd, 2010 |

In Q3 2009, American households saved 4% of their income, a sharp increase from 1.5% in 2007 before the current financial crisis. Tax breaks in the “economic stimulus” package were directed to savings rather than consumption.
Private sector tax payers were incensed by the profligate behavior of the Pelosi-Reid Congress, which gave rise to the Tea Party Movement.
The coming storm:
By John Schroy, on February 20th, 2010 |

In 35 of the last 50 years, gold prices have fallen relative to inflation. On four occasions, gold has fallen 50% or more. Gold does not track inflation, but rather anticipation of hyper-inflation or war.
In 2010, gold prices were soaring, reflecting fear of inflation from fiscal excesses of the Obama administration and continuation of war in Iraq and Afghanistan. If Obama is a one-termer, gold prices could fall.
Bond market:
By John Schroy, on October 23rd, 2009 |

The flight to safer investments, which started with the Crash of 2008, has accelerated as the consequences of economic policies of the Obama administration have become evident.
There has been a net swing away from certain classes of private debt on the order of USD 1.5 trillion, between 2006 and Q2 2009. This money has gone into US Treasury securities, driving rates to almost zero.
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