The cost of living in the United States climbed more than forecast in July, which could make it harder for Federal Reserve chairman Ben S. Bernanke to persuade colleagues to immediately act to spur growth after manufacturing in the Philadelphia region plunged in August.The consumer price index increased 0.5 percent from June, more than twice the 0.2 percent median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed yesterday. The Philadelphia Fed’s general economic index dropped to minus 30.7 this month, the lowest since March 2009, when the economy was in a recession.Full Story
So cost of living is rising, wages are dropping ,and we are not adjusting for inflation; if we do that most workers will appear to be slaves; working for almost free. Sentiment is dropping across the board and there are signs of inflation all over the place.
Bottom line is that things are going to get a lot worse before they better. The stock market is right now is getting ready to enter into a bear market that could last for up to 2 years.
Its time to slowly nibble at shorts, take some profits on your Gold and Silver positions, reduce your debt as much as possible and live 1-2 standards below your means.
After the precious market sector pulls back, fresh money can be deployed into this sector. Right now its simply too hot.