budget deficit and the dollar
Stronger unemployment numbers over the past several months will create U.S. government deficits that could be more than originally projected. Long-tern interest rates could rise as a result of the burdens of financing the deficits, even when the economy improves. Higher deficits also may make it a tough case to sell the healthcare reform and cap and trade issues.
That brings us to the next item: the dollar. what's hurting the dollar is both fundamentals and technical. With the help of the usual numbers coming in negatively and take a look at the usd index, it is no wonder why the dollar decline continues. Also knocking on the door is eroding purchasing power, inflation and stagnation well into the future. Usually a lower dollar means higher commodities and precious metals.
