Basically, the US is confronted by a set of negative economic parameters which are converging.
No amount of spin doctoring can change this set of damaging influences: Greenspan can't control oil prices.
1.Starting with the Housing bubble and Inflation, the Fed is hellbent to reduce the heat by raising interest rates.
As it does so, the effect of oil prices is now becoming real and this increases real inflation still more.
The economy will slow down, the housing bubble could turn into something nasty.
In a slowing economy less income will be from taxes while the Govt's expenses may rise.
More borrowing and/or more dollar printing is needed.
At this stage the Lender to the US may well want a higher interest rate from treasuries. The USD will fall.
Hopefully Gold will rise.
Not a nice situation with declining value of assets.
See how it pans out.
Gerry
an ominous day for planet wall street , page-2
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