China Ready to Take Out the U.S. as the Number One Economy This Year

 

Well, America, it has been a good ride! But, our status as the #1 economic power and soon to be the #1 military power is about to end.  China should be the new world economic power by the end of this year.  And, the sad part of this is that the majority of Americans are totally clueless about this or really don't care.

Long-Term Perspective of the 10-Year Treasury Note

I still believe that "interest rates" are heading higher over the intermediate term, not lower. The long-term declining trend line from September 1981 has finally been penetrated on the upside.  Does this mean that rates are going straight up from here?  No.  Nothing goes up in a straight line.  If anything, the rate on the 10-year $TSY Note may decline to 2.4%, still above its declining trend line, before reversing to above 3%,

It's All About the Money

 

The about chart clearly depicts the reason why Wall Street hates the Fed's tapering policy, which is a policy of currently buying $65 billion of Mortgage Back Securities and U.S. Treasury Securities down from $85 billion.  In other words, Wall Street's perception is that tapering by the Fed is in reality a tightening position by it.  Also, the chart clearly demonstrates a rather close relationship between the growth of "Federal Reserve Assets," a cause, and the performance of the "S&P 500," an effect! 

Upcoming Lunar Eclipse

A lunar eclipse is scheduled for Tuesday, April 15, 2004.  A lunar eclipse occurs during the night when the earth passes between the moon and the sun.  [It is interesting to note that this lunar eclipse occurs on the same day as the start of Passover (Pesach), which is from sunset April 14 to sunset April 21.]  What are the potential economic/financial implications during such an eclipse?  My answer to that question is to simply keep your eyes on the Middle East during this time  Any happenings in the Middle East during this time would have major consequences on the financial markets throughout the world. 

Chevy Colbalt: The Next Corvair (Unsafe at Any Speed)

 

Do you remember the Corvair?  That was the car that GM produced in which Ralph Nader referred to as "Unsafe at Any Speed."  Well, GM has another Corvair on its hands by the name of Colbalt.  So far, GM as recalled closed to 5 million vehicles, one of which have been alleged to be responsible for at least 12 deaths.  Shame on GM for knowing for over ten years of this ignition problem and doing absolutely nothing about it.  Will anyone within GM go to jail?  Probably not, but someone definitely should.  This is another reason why I will never "buy" a GM product.