Monetary Cards on the Table
Source: GoldSeek, Peter Schiff (8/10/10)
"The 'Stimulators' should be sweating. . ."
To start, the latest economic news for the U.S. has been bleak. Although 2Q GDP figures show the economy to be "expanding" by 2.4%, the pace is little more than half the average rate over the previous two quarters. What's worse, U.S. debt levels are expanding faster than GDP.
As everyone with a credit card knows, it's easy to expand spending if you charge it. But even this borrowed growth has failed to make a meaningful dent in persistent U.S. unemployment. The just-released July payroll report shows the American economy shed another 131,000 jobs, marking three full years of private sector layoffs.
Almost lost in the news is the disappointing reversal of U.S. trade flows, which in May unexpectedly widened to the highest level in 18 months. In other words, the weaknesses that pushed our economy into crisis in the first place shows no sign of abating.
The remainder of this article and even more in-depth analysis of other investment topics are available in the August edition of my newsletter, The Global Investor. Click here for complimentary access.