2010: Grim Economic Predictions For What May Be the Tipping Point Year

The Federal Budget for 2010 anticipates a $1.5 trillion deficit. I believe the Obama administration will pull out all the stops to boost the economy before the 2010 elections. This means more spending. The 2010 deficit will be closer to $2 trillion. The bond market and foreign buyers will choke on this amount of debt. The result will be much higher interest rates. Ten year Treasuries will start the year at 3.8 percent. By year end, rates will exceed 5 percent. As the world loses confidence in the American economy and leadership, the dollar will fall to new all-time lows falling by another 15 percent. A falling dollar will result in a surge in gold and silver. Gold will break $1,500 an ounce, with silver breaking $20 an ounce. As world demand increases and peak oil becomes acknowledged, oil prices will exceed $100 a barrel further depressing the U.S. economy.

Congress will pass the Obama healthcare plan by the end of January. The outrage will be palpable. Obama will then announce another stimulus program and call it a