|
The world economy is very sick and is supported by government spending/borrowing rather than intrinsic demand. When you borrow to the eyeballs you pull forward demand - were now seeing the necessarily reduced economic activity as people try pay off debt which in turn raises unemployment and causes falling asset prices. The future looks volatile at best and our dollar could plummet at any time - a lot depends on political decisions and when governments lose control of the ponzi economy - they could keep it going for a lot longer yet.
|