Economic Realities of the US Economy (Charts)

facts-us-economy

Conditions show weakness, not improvement. Soft-land enthusiasts face rude awakening challenges. Later in 2012 and especially 2013, expect tougher times to reshape their outlook. They’re always notoriously behind the curve.

Bad policy begets bad results. Force-fed austerity promises hard times getting nasty. In fall 2007, residential housing’s reversal shaped events going forward. administration policies have been spectacularly wrongheaded. Planned late year austerity when stimulus is needed will be disastrous.

Inflation is much higher than reported. So is unemployment, growing poverty, and public pain. At the same time, high food, energy, medical, transportation and other costs grow more unaffordable. Households with limited resources feel it most.Home prices haven’t stabilized. Meaningful job creation is moribund. Solutions for issues this important aren’t addressed. Rhetoric substitutes for sound policy.

The following charts display the economic realities looming in regards to the U.S. Economy.

Precious Metals Investing, US Economy

Chinese Group Buys 80% of AIG Plane Unit for $4.2 Billion

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Photographer: Ramin Talaie/Bloomberg

A Chinese group agreed to buy 80.1 percent of American International Group Inc. (AIG)’s plane-leasing unit for $4.23 billion in the nation’s largest acquisition of a U.S. company.

The International Lease Finance Corp. acquirers, led by New China Trust Co. Chairman Weng Xianding, have an option to buy another 9.9 percent, New York-based AIG said today in a statement. The transaction, which values ILFC at $5.3 billion, passes China Investment Corp.’s $3 billion purchase of a stake in Blackstone Group LP (BX) in 2007 as the biggest Chinese-U.S. deal.

A group of Chinese investors agreed to buy an

Precious Metals Investing, US Economy

Majority Doesn’t “Have A Right To Steal My Money Just Because They Voted For It” (Peter Schiff)

CNBC’s Eamon Javers reports the latest developments on “fiscal cliff” talks in Washington, and debating the financial benefits of raising taxes on the wealthy, with Peter Schiff, Euro Pacific Capital CEO, and Richard Brodsky, Demos senior fellow. PETER SCHIFF: First of all, I’m in the top two percent. Right now, I’m paying 45% of my total income in income taxes, both to the state of Connecticut and to the federal government, and if you take the 3% Medicare tax. After the tax hikes go into effect next year, more than half — more than half of my total income is going to go to the government. You tell me, what’s fair about that when

US Economy

Top ETF Winners And Losers In November: Palladium Trust

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Palladium shined brightest over all other ETFs in November.

ETFs Palladium Trust (PALL) soared nearly 13% during the month as workers went on strike at South African mines. The metal used in automobile catalytic converters is produced as a byproduct of platinum. South Africa accounts for 75% of global platinum mine supply.

Bloomberg reported platinum and palladium

Precious Metals Investing, US Economy

Fiscal Cliff:Gold And Silver Poised To Rally Despite Economic Slowdown

fiscal cliff

Gold and silver have been trading sideways for most of 2012, but these precious metals may make higher prices their New Year’s resolutions. Although this market has been choppy and range-bound, gold appears to be poised for a possible breakout to the upside.

Gold (December) issued a buy signal on the daily chart Friday (Nov. 23) following a buy signal last Monday (Nov. 19), which was gold’s first buy signal since the trend changed to the upside. Gold is now super-trending to the upside and has closed above major resistance areas on the daily chart, which now acts as support. I define a super-trend as any market that trends above its nine-period simple moving average (SMA).

The trend remains up on the weekly chart and gold has little resistance overhead. Taking a look at gold’s weekly chart, you can see that gold has been stuck in a range for some time, and if gold takes out its September highs of around

Precious Metals Investing, US Economy

Morgan Stanley Predicts Major Recession in 2013 Doom Scenario


Morgan Stanley’s David Greenlaw talks about his outlook for the U.S. and global economy. He speaks on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

Morgan Stanley sounds “Recession Alarm”

The global economy is likely to be stuck in the “twilight zone” of sluggish growth in 2013, Morgan Stanley has warned, but if policymakers fail to act, it could get a lot worse.

The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent.

“More than ever, the economic outlook hinges upon the actions taken or not taken by

Precious Metals Investing, US Economy

Is Obama’s ‘Fiscal Cliff’ Proposal a Deal-Breaker?

After the election President Barack Obama met with congressional leaders to discuss the “fiscal cliff.” Among the things campaigned for were tax hikes for the wealth to raise top income-tax rates but also to extend the Bush tax cuts for income levels below $200,000.

The president spoke about new ideas with his union and liberal-interest-group supporters, all of whom want to raise the top rates. Barack Obama spoke about providing a balance of spending cuts and tax increases only on the most wealthy earners.

However at this point a stalemate may be the most likely solution. Why?

Silver as an investment, US Economy

Treasury Secretary Proposes to Lift Debt Limit to Infinity (VIDEO)

As reported by CNSNews.com Treasury Secretary Timothy Geithner said Friday that Congress should stop placing legal limits on the amount of money the government can borrow and effectively lift the debt limit to infinity.

On Bloomberg TV, “Political Capital” host Al Hunt asked Geithner if he believes “we ought to just eliminate the debt ceiling.”

“Oh, absolutely,” Geithner said.

“You do?  Will you propose that?” Hunt asked.

US Economy

What is the Fiscal Cliff?

fiscal-cliff

“Fiscal cliff” is the popular shorthand term used to describe the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 are scheduled to go into effect.

Among the laws set to change at midnight on December 31, 2012, are the end of last year’s temporary payroll tax cuts (resulting in a 2% tax increase for workers), the end of certain tax breaks for businesses, shifts in the alternative minimum tax that would take a larger bite, the end of the tax cuts from 2001-2003, and the beginning of taxes related to President

Gold as an investment, US Economy