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I think the American economy remains fairly strong and will continue to be so at least through the 4th quarter. They aren’t a day late and a dollar short, they are a day early and a dollar too much.

It would have been better (for the left) to start their, (everything that should be up, is down) rhetoric in January or February. Interest rates are relatively low, which is a good thing for the economy overall but falls short of being the ideal savings environment.

The metrics have changed in such a way that it is really hard to “know” anything about the economy. Higher housing costs are now a positive, go figure. The main source for concern for me would be that a lot of the consumer spending that powers the overall economy; is fueled by consumers spending on cheap ChiCom goods, via unwise trade deals.

It seems like a positive to consumers and in the short-term it may be. In the long-term it isn’t and the American consumer can only spend what they don’t have for so long. This isn’t real in that it is “empty tank” economics. We need growth in the manufacturing sectors or eventually we just become an economy of “middle-men”. It never takes long for the seller to start thinking about ways to eliminate the middle-man.

Another factor in the low savings numbers is that we have to rely heavily on foreign investment for our own investment capital. China has a big card to play in that they can pull their heavy investments in the US at any time. I am not sure it would be in their best interests to do so, but it’s a card they have and it gives them an advantage.