Jim,
U.S. Dollar Index and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:
A breach of the relative swing high suggests the formation of another 1 formation. This is consistent with controlling the dollar’s descent. Lower dollar equals higher gold prices. Sooner rather than later, the money flows in the gold market will have to reflect the developments in the U.S. dollar Index market.
CIGA Eric
Jim,
The deficit would be 12.9 percent of GDP this year, the biggest since World War II.
US red ink rising even higher, to $1.8T
By ANDREW TAYLOR, Associated Press Writer Andrew Taylor, Associated Press Writer
WASHINGTON – The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past $1.8 trillion under new White House estimates. Budget office figures released Monday would add $89 billion to the 2009 red ink — increasing it to more than four times last year’s all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.
Just as a comparison, the German government forecasts the deficit at about 3.9 percent of GDP this year (above the European budget deficit ceiling of 3% of GDP).
Bundesbank sees German budget deficit about 6 pct in 2010
11-MAY-2009 13:15
FRANKFURT, May 11 (Reuters) – Germany’s budget deficit will soar to around 6 percent of gross domestic product (GDP) next year and could spark disciplinary action from the European Commission, the Bundesbank said on Monday.
The German central bank said the country’s public debt ratio could rise to about 80 percent in the next two years as a result of lower revenues and higher spending to combat the recession.
Regards,
CIGA Christopher
Dear Jim,
This screams of your "Formula" again in spades!
Best,
CIGA BT
US red ink rising even higher, to $1.8T
By ANDREW TAYLOR
Associated Press Writer
WASHINGTON (AP) — The government will have to borrow nearly 50 cents for every dollar it spends this year, exploding the record federal deficit past $1.8 trillion under new White House estimates.
Budget office figures released Monday would add $89 billion to the 2009 red ink – increasing it to more than four times last year’s all-time high as the government hands out billions more than expected for people who have lost jobs and takes in less tax revenue from people and companies making less money.
The unprecedented deficit figures flow from the deep recession, the Wall Street bailout and the cost of President Barack Obama’s economic stimulus bill – as well as a seemingly embedded structural imbalance between what the government spends and what it takes in.
Dear BT,
You haven’t seen anything yet. Unemployment is arithmetic but the impact on the deficit is geometric.
God help us all if this new flu is as serious as some say. The deficit could go as high a $7 trillion. Do the math.
Jim
