According to the paper, everybody is making more and more stuff. This helps assure that the recovery “has legs.”
Auto sales, too, came in stronger than expected in March. So it sounds like the recovery has wheels too.
What we want to know: does it have a brain? Who’s buying this stuff and where are they getting the money?

At least the economic model of the bubble era made sense. The producers produced. The consumers consumed. That worked great until the consumers ran out of money. Then, they had to borrow from the producers. And eventually, the whole thing blew up when it became clear that the spenders had borrowed and spent too much, while the producers had expanded and produced too much.

So far, so good. But now, the world economy needs a new model, right?

The consumers can’t really go back to borrowing, can they? Nope. Not without digging themselves deeper in the hole…or actually earning more money. So, the producers can’t exactly go back to producing either, can they? Nope. Not without customers.

Well, who the heck are all these manufacturers making stuff for?

Darned if we know. In theory, there are billions of ready consumers in Asia and Africa. Except they don’t have much money. And don’t have much credit. And don’t have shopping malls. And don’t have any way to get to the malls if they existed.

In India, for example, half the population lives on less than $3 per day. You can do the math yourself…even if they spent every cent on “stuff,” it would mean total spending of $500 billion, more or less – which is less than the US trade deficit in 2007. Of course, they can’t spend their money on ‘stuff’ – they need it just to eat.

On the other hand, India’s middle class is already as big as the middle class in America – and it’s growing fast. But how does it make its money? By producing, we assume. So as it gets wealthier, doesn’t it add to the world’s supply of stuff…as well as consuming it? And since Asia is more of a producer, in general, than a consumer…isn’t it adding to the world’s supply of stuff faster than it consumes stuff? And since labor costs are so low, doesn’t it add more cheap stuff?

The point we are making is that it takes time for one group of consumers to get out of the way and for another group to take its place. Even if you believe that Asian consumers will replace buying from the US and the UK, you still have to admit that this ain’t gonna happen overnight.

First, because Asian would-be consumers need to earn more money. Second, because they need to change their habits – from saving to consumption. Third, because the factories need to switch from making things US consumers want to making things that Asian consumers want. Fourth, because they also need to set up new channels of distribution and sales.

In the meantime, who’s consuming more than he is producing? We don’t know. But someone must be doing so…otherwise all this extra manufacturing just adds to the world’s inventory of unsold merchandise.

This is just a reminder about the way an economy actually works. The meddlers in China think they can stimulate production. The meddlers in America think they can stimulate consumption. Then they accuse each of “manipulation.”

We’ve seen at least four or five different arguments about what the value of the yuan ‘should’ be. One hundred and thirty Congressmen think they know. Paul Krugman thinks he knows. Everyone seems to think he knows. But the truth is – none of them knows. Nobody can know. Only the market knows. And it isn’t talking. It can’t talk. Its lips have been sealed by government order.

The yuan is supposed to be too low because it is linked to the dollar. There is no logical reason to say that the yuan is too low at all. You might just as well say the dollar is too high. But once you allow yourself the fantasy of silencing the markets and reorganizing the world’s commerce, the sky’s the limit.

Source: conservatives.com

So, where to invest in 2010? A mattress? Real estate? Apple? Many experts are predicting an economic landscape they call the “New Normal,” with slow growth and less-than-spectacular investment returns. But that doesn’t mean that the space between your mattress and box spring is your best investment. In fact, with interest rates at or close to all-time lows, your best moves in 2010 may be to refinance your mortgage and find ways to shield your income from taxes. And there will be plenty of investing opportunities — there always are. Look for them in stocks that pay dividends, short-term U.S. government bonds, and foreign stocks and bonds. To protect yourself from inflation, a dose of commodities and Treasury Inflation Protected Securities (TIPS) might be a good idea as well.

Here’s one inescapable reality of 2010 and beyond: The U.S. government is looking for money, and affluent taxpayers are likely to be the easy target. Credit card companies will also be looking for new ways to get your money. We’ll give you strategies to protect yourself against both, including an explanation of the new Roth IRA rules and the home buyer tax credit. And keep an eye on the federal estate tax — opponents call it the “death tax.” It’s supposed to vanish in 2010, but it’s possible Congress will keep it alive.

You’ll want to take advantage of the breaks for borrowers, invest in a few key mutual funds or ETFs and prepare yourself for battles with the IRS and the banks. Read the stories below to learn the smartest money moves for 2010.

Stock Predictions for 2010

Whether you’re a full-fledged “new normal” believer or not, U.S. blue chips are likely to offer exceptional opportunities in 2010. As MoneyWatch editor-in-chief Eric Schurenberg recently pointed out, GMO chairman Jeremy Grantham calls high-quality stocks with stable cash flows and low debt levels the “only free lunch” in the market now. You can buy a mutual fund that specializes in such companies, such as the Jensen Portfolio (JENSX), or you can hedge your bet by owning a low-cost index fund such as The Vanguard Total Stock Market Index Fund (VTSMX). As the name implies, you capture the returns of the total market, but since it’s top-heavy with the largest, most-stable companies, you’ll still benefit if they do indeed outperform.

One thing most observers agree on for 2010: Foreign securities will likely do better than domestics. Guillen recommends keeping at least a third of your money “in foreign stocks and bonds of countries that will be liable to grow quickly over the next five to 10 years.” International stock funds with excellent track records and below-average expenses include Oakmark International (OAKIX), Janus Overseas (JAOSX), and Vanguard International Growth (VWIGX). They’ve all beaten more than 80 percent of their peers over the past 10 years.

You can combine high-quality U.S. stocks and foreign exposure by owning U.S.-based multinationals that generate much of their profits overseas. To do this, you can take the index route, owning an ETF such as the iShares S&P 100 Index (OEF). The Jensen Portfolio offers similar exposure. Jensen co-manager Robert McIver has noticed a migration towards such stocks in his fund, due to a weaker dollar and changing corporate strategies. “The percentage of our companies’ foreign revenues has grown from 33 percent two years ago to 50 percent today,” says McIver.

If the slow-growth thesis proves accurate, high-quality dividend-paying stocks should do well in 2010, after lagging in 2009. “One of the underappreciated lessons of equity investing is the value of compounded income from dividends,” says Swanson. “In the stock market, 50 percent of investors’ returns have come from [compounded] dividends historically.” Two ways to buy a basket of dividend-paying stocks: Vanguard Equity Income Fund (VEIPX), with a 2.52 percent yield, and SPDR S&P Dividend ETF (SDY), with a 4.02 percent dividend yield.

Bonds Predictions for 2010

Interest rates on U.S. government bonds are at historic lows, which suggests they have nowhere to go but up. As a result, bond investors should stick with high-quality, short maturity bonds or funds that hold them. They won’t gain as much as long-term bonds if rates fall even farther, but they’ll lose a lot less if rates climb. Consider Vanguard Short Term Bond Index (VBISX), which owns a mix of government and corporate bonds and has beaten 90 percent of its peers over the past 15 years.

If you prefer to own nothing but U.S. government bonds, buy an ETF that holds Treasury Inflation-Protected bonds, such as iShares Barclays TIPS Bond ETF (TIP). To help your portfolio benefit from a falling dollar, consider a foreign-bond ETF such as iShares S&P/Citi 1-3 Years International Treasury Bond ETF (ISHG), which purchases foreign government bonds exclusively.

Commodities Predictions for 2010

Inflation may be low now, but if the global economy continues to strengthen in 2010, it’s likely to start heading up. Since commodities tend to rise as the value of a buck falls, you may want to keep 5 to 10 percent of your portfolio in commodities. MoneyWatch’s primer on commodity investing can help you do this wisely. Two ideas: the PowerShares DB Commodity Index ETF (DBC) and the Credit Suisse Commodity Return Strategy Fund (CRSOX). Both track commodity futures indexes that reflect actual commodity prices, rather than investing in stocks of commodity producers or distributors. Historically, commodity futures have been a better way to diversify, since movements in commodity stocks tend to be more correlated with the broad stock market.

Financial Forecast for 2010

* An inflationary cycle triggered by a massive increase in the monetary base
* A reversal in equities triggered by the unwinding of monetary easing by the Fed or other central banks
* A shift from a weakening dollar trend to a strengthening dollar trend if the Fed decides to tighten. This would affect our gold and emerging market allocations in particular
* Sovereign debt default by a major world player or a significant downgrading of sovereign debt (the most likely candidates being Greece and California)
* Rising mortgage rates as Treasury yields rise. This would have a particularly nasty effect on commercial real estate and the US banking sector (which still holds massive amounts of commercial real estate debt)
* A geopolitical upset such as a conflict in Iran. This could put serious strain on US-Sino relations and seriously affect the commodities market

My take is only slightly different: In my experience, all of us – one-hundred percent of us – spend the vast majority of our time on Earth asleep. Living in our self-constructed ruts, running on autopilot; sleepwalking through our lives, our relationships, our careers.

It is only when an event stops us … jars us out of our slumber … that we have a moment of vivid clarity. In those fleeting seconds, we are truly alive, fully sentient, totally self-aware. And for those few heartbeats, we are absolutely astonished by the reality of our existence.

For me at least, Thanksgiving has always been one of these moments. As long as I can remember, I’ve used this holiday to jar myself from my slumber; to marvel at the miracle of life and of consciousness. And as if the gift of existence alone isn’t enough, to allow myself to be amazed at the many other miracles that have made my life so rich and rewarding.

There are so many other reasons for me to give thanks this year: For my health and the health and safety of those I love. For the friendship and loyalty of my team. For my faith in God.
So, what are you thanksful for?

Now that everyone knows how important drinking enough water is, we are experiencing yet another phenomenon: illness and death by drinking too much water. Why is this?

We know that it’s important to drink half of our body’s weight in ounces of water. That is not, however, always the case if one has a medical condition, such as a kidney disturbance, in which the water-potassium exchange in the Loop of Henley, in the kidneys, is compromised. Also, certain cardiopulmonary diseases often require fluid restriction in some cases. Always check with your doctor in regard to fluid intake if you are currently receiving medical care. Still, structured water is the key and is important for highest and best results.

The cogent mystery that needs to be solved for most people to even make an effort to drink structured water lies within understanding its nature and why it’s so essential. Structured water is liquid, crystalline, biologically active water that contains water molecules that have a hexagonal, geometrical shape to them. It is believed that, millions of years ago, the Earth’s magnetic fields were much stronger than they are today and that our water has lost much of its healing resonance. We may never know. That’s why structured water is so important.

In the 1970s, Dr. Raymond Damadian was one of the first people in medical science to suggest that MRIs could be used to diagnose cancer. In his later research, he began to study the molecular structure within the cell. Using an MRI, he discovered that cancer cells contain disorganized water, characterized by increased motion and moveability. Pollution, and possibly a weakened magnetic field, may be the cause of the water’s lack of structurability today.

Desirable structured water has less surface tension and more stabilized hydrogen bonding, made in narrower line widths, which make water more biologically alive and absorbable to our cells. The frequency of structured water is believed to be 60 to 70 hertz. Tap water measured 100 hertz or greater. Millions of dollars are spent each year removing pollutants from our drinking water; however, even the purest water may contain vibrational pollution. The more times it’s recycled, the more polluted it gets, unless its structure is revived.

Water is one of the most programmable substances on the planet. It has a memory and the alchemical ability to store and transport energy and information throughout the cells of our bodies. The best sources of structured water are the natural sources on our planet. Natural springs, streams, rivers, and water from under glaciers that are unpolluted are best.

Structured water is also found in water-rich organic fruits and vegetables grown in rich soils, especially near ancient volcanoes, and they’re wonderful because they are mineralized, alkalized, and ionized; however, the current reality is the major sources of water in the world are polluted and too warm, because people have not honored the law of equal exchange in relation to Mother Earth and the sanctity of her balance.

We cannot get all of our water from eating because we’d have to eat too much, thus defeating our purpose of maximizing our health and well-being. You can buy commercially structured water, but most of it is stored in plastic water bottles that can be toxic to our health. A pure source of water is steam-distilled and free of toxic contaminants. Unfortunately, distilled water in itself is non-living water and, again, unstructured. It is biologically dead, like a blank tape. The essential life force must be restored.

This can be accomplished in a variety of ways. You can take purified water and add micro-crystals. You can read more about this idea by investigating the research of Patrick Flanagan, M.D., Ph.D.

I do a variety of treatments to the water I drink and test it through kinesthiology, as well as using a resonance meter. I take purified water and put it in a machine that has a hexagonal filter that contains many natural minerals, including tourmaline. I make pitchers of water to drink, and I refrigerate the water quickly to help it stay alive.

The machine I’m currently testing is called the “Vitalizer Plus,” which you can purchase on the Internet. There are a variety of vortex machines becoming available. I place fresh pitchers of water on top of high-quality speakers and play my sound frequency treatments, especially the one included in my book Sound Health, Sound Wealth: The Biology of Hope and Manifestation. You can also use Jade Wu Life Force, which is included in my program The Temple of Rejuvenation.

Many people love the work of Masaru Emoto, and they write high-frequency words such as love, peace, reverence, gratitude, on containers of water. Emoto’s books with pictures of water under a high-resolution microscope are compelling. Because there are so many subjects to cover here, I have just given you a few ideas that can be investigated according to your interest level.

One important thing to remember is that, once you’ve obtained either ready-made or self-created, hexagonal water, it must be kept away from electronic devices, such as computers and cell phones. Also, although it’s healthier to drink water at room temperature, to keep water stable and structured, it must remain cool. Although nutrition is important, our overall well-being is greatly affected by the ways in which we cultivate and maintain our abilities to experience joy, personal satisfaction and fulfillment, and rich abundance in all pleasing forms.

One last note on maintaining a healthy pH: for more than 10 years now, I’ve noticed an interesting phenomenon. I have tested patients and clients before and after sessions to discover that they often had a beautiful, berry-colored 7.4 pH on the medical testing strips I use. I have patients keep logs that have revealed that, many times, in spite of eating junk food, if they were in resonance of the heart, truly in the present moment enjoying themselves, they had a perfect pH balance.

You can try this, as well, if it interests you. I have even worked with patients who saw a great movie, ate Mexican food, and had a great time with friends, or patients who laughed until they thought they might die, eating “the wrong foods,” produce a great pH. Sometimes just having pure, intense pleasure can trump correct nutrition.

Source: AudioBooksLearning.com