Interest
Rates
Inflation is a
continues or persistent rise in the average level of prices.
Most economists consider inflation to be a monetary phenomenon.
In a sense that there has never been any serious, ongoing
inflation without excessive monetary growth, i.e., the Central Bank
(Fed) has increased the stock of money much more rapidly than the
economy is able to grow.
With inflation on the rise, the question is how much inflation will
the Fed tolerate? By how much will interest rates rise? Home mortgage
rates will most likely hover around 6.00%
by year-end.
Crude
Oil & Gasoline
Prices
The price per barrel of crude oil has again hit $55.00-$57.00/barrel
this past week. Gasoline prices will go up further as the driving
seasons begins.
SUV sales seem to already respond to rising fuel prices
Social
Security
The notion of privatizing social
security or just a
part of it, as suggested by President Bush, has been
around for decades. The financial markets and pension advisory services would love it.
This would be the last big program, enacted as part of the New Deal,
that is coming under attack. Prior to the 1930s, there was
no retirement system for the elderly.
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