Welcome and thank you for visiting!

The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...please read my full Disclaimer at this link.


* If the dots don't connect, gather more dots until they do...or, just follow the $$$...





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Wednesday, October 05, 2011

Do you base your spending habits on GDP forecasts?

I saw that headline question pre-market today on Canada's BNN TV...unfortunately, I didn't get to watch the answers that the "man/woman in the street" gave.

Really, is there any doubt? Doesn't it go something like this?...a balanced budget = personal income divided by personal outgoings with, hopefully, something left over to put into savings for retirement and future inflation. And, since I don't have the luxury of my own personal money printing press, I can't fabricate what I haven't legitimately earned to cover expenses. So, NO is my answer, if I were polled.

With bank interest rates pretty much non-existent these days, and the fact that personal debt-to-income ratio has skyrocketed to extremely excessive amounts for many Americans over the past few years, I don't see how the country's economy can legitimately grow (from domestic demand) without the printing of additional money. What people are faced with, in reality, is trying to pay off debts and survive at the same time. The same comments apply to the world economies...a slowdown in growth = a slowdown in demand for U.S. products/services (as well as for domestic products/services).