Is the US Economy Healthy?

If you're still having second thoughts about whether the US economy is healthy, here are few things to consider:

• Over the last two years, the dollar has lost 20% of its international purchasing power


• The impacts of a weaker dollar include more expensive imported goods, including oil


• Look at the prices of all commodities over the last few years (or even over the past few months), especially gold, silver, platinum, wheat, corn, oil, etc.


• The price of wheat about a year ago was around $5/bushel. Within just the last week it went up by more then $5/bushel to an all-time high of around $30.


• Think about the prices of things you buy on a regular basis. How much have they gone up over the last year? Do those increases match-up well with the government's claim of 4% inflation?

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• In 1964, while the US was still using silver coins, the average price for a gallon of gas was $0.30. Today, a 1964 silver quarter (now worth about $3.50) will buy a gallon of gas. So priced in silver, gas is actually cheaper today than it was 44 yrs ago. Or, to put it another way, the dollar is only worth 7% of what it was worth back then (a $100 bill today can buy what $7 could in 1964).


• Have a look at the charts at http://www.prudentbear.com/index.php...e/ChartLibrary The one showing consumer debt as % of GDP is particularly disturbing.


• Think about how much you're really paying in taxes. In the 35% federal tax bracket for people in California, it totals up to more than 60% (FICA, sales tax, medicare, state tax, etc).