Economy

There has been a lot of media coverage about the United States' debt issue these days. Why should we care? Because as U.S. citizens, we all own stock in this "company" called the United States of America (let's say the ticker symbol is USA). We purchased this stock through the various taxes we pay every year (income tax, payroll tax, corporate tax) and we receive dividends through the various benefits we receive every year (security provided by defense budget, Medicare/Medicaid benefits, Social Security benefits, etc.). This article attempts to explain the U.S. national debt in simple layman's terms by analyzing the United States and its debt issue as if it were a stock investment. Words: 1929; Charts: 5; Tables: 1

The week leading up to the holidays can be the most hectic imaginable so it is quite possible you didn't find time to keep abreast of recent developments in the economy. Not to worry. Below are introductory paragraphs and links to 8 of the "best-of-the-best" articles on the subject.

A look at the trend in prices of the Big Mac clearly shows that investors are being penalized with higher inflation, lower income from bonds and certificates of deposit and being led to believe that the economy is growing better than it really is. [Let me explain.] Words: 1012; Charts: 2

Since 2012 is rapidly coming to a close, I’m fielding questions about what the future holds for 2013. My hope? That my answers will be both informative and instructive, and ultimately profitable, of course. Words: 1588; Charts: 2

"World Debt 101" examines some of the world's largest economies and illustrates just how much they have borrowed and what measures many of their governments are now taking to curb spending and narrow those deficits.

I use three approaches to shape my world view and then combine them to get a much clearer picture of what likely lies ahead. My goal today is to share with you how I come up with a view of the Big Picture and to share my outlook for 2013. Words: 873

The six charts I provide in this article illustrate why the hyperinflationary pressure in America is growing. This is not necessarily a forecast for hyperinflation - this is simply a demonstration that some of the precursors to a hyperinflationary cliff are building. (Words: 1001; Charts: 7)

While Treasuries are said to have no default risk as the Federal Reserve can always print money to pay off the debt, hidden risks might be lurking. As oxymoronic as it may sound, the biggest risk to the economy and the U.S. dollar might be, well, economic growth! Let us explain. Words: 2065; Charts: 1

The U.S. Dollar Index took a breather on Thursday on its apparent way down and through its support line of 79.00 closing the day at 79.26 vs. 79.27 on Wednesday well below its 50 day moving average of 80.16.

Barron's have just come out with the forecasts of 10 top analysts and ALL their forecasts are positive. There is not a single forecaster who expects the S&P 500 to fall in 2013 and there is only one forecaster who expects the 10 year bond yield to fall from its current level of 1.7% and he only sees a 10 bps decline to 1.6%. [Look at the average forecasts for each item at the end of the post.]