More Bad News -- American Deficit Reaching Astronomical Proportions

Some of my friends (in jest) accuse me of unfounded optimism. But I find so much daily evidence that I wonder why nobody has sent me a bottle of the intoxicating beverage that is propelling the stock market to a rebound. The market logic assumes Obama is fixing America, so that the export engines in China and India can roar forward later this year to supply the wonderful American consumer. Global growth is just around the corner. Or is it?

My concerns are echoed by Clive Crook of the Financial Times. Read his latest prognostication for a 10% or higher American fiscal deficit. That plus alarming monetary expansion spells "INFLATION" ahead.

That comes on top of a permanent trillion dollar American trade deficit from oil imports. But why let a few missing trillions spoil a good party? Go buy stock!