This week proved many more "Unexpected Economic Results". Unemployment "Unexpectantly" rose to 490,000 new claims. Housing Starts "Unexpectantly" fell by 7.2% and was dramatically lower than predicted. Consumer Confidence "Unexpectantly" fell to 10 month lows going back to April 2009. Equipment Orders "Unexpectantly" fell to new lows. Housing Sales fell by 11% "Unexpectantly". GDP "Unexpectantly" being revised from 5.7% to 5.9%. Over 4% of the 5.9% number came from inventories rising which is due to manufacturers overshooting the mark and not having sales to keep their inventories in check. Thus the revised higher number that in the historic paper by Alan Blinder in 1980 stated rising inventories is a clear sign of recession coming and a dramatic contraction in manufacturing. If you are wearing the rose colored glasses, all of these results would appear to be unexpected considering we are in a full blown recovery according to Ben Benanke and Wall Street. If you are looking at the facts and realize we are heading into the double dip recession, these results are "EXPECTED", and you can take measures to protect yourself and your wealth. You can lower your exposure to stocks and bonds. You can fix interest rates on adjustable loans or pay them down to protect from rapidly rising interest rates. You can purchase tangible investments which will both protect from inflation and losing purchasing power. You can shift cash equivalents into gold. If Ben Bernanke truly believed we are in a recovery they would never increase the money supply by $90 Billion in the last two weeks, desparately trying to re-inflate our economy by printing money. See chart below of the recent activity of the Fed Printing Press, aka Monetary Base. Happy talk is one thing, but ignoring the obvious, the governement potential defaults, the real economic activity going on will be perilous to your financial health. CommentsLeave a Reply | FREE SUBSCRIPTION!Receive Emailed Articles as they are Posted. Click Below on RSS Feed!Jason's Thoughts!My goal is to use this format to bring important and timely ideas to the surface on recent events which I feel will affect all of us financially. ArchivesFebruary 2012 Categories |