EconMatters's blog

The added weight on the gross national debt as well as the dis-incentive for people to seek better education would prove to be one of the greatest risk for America as a whole.

Sorry, you can't blame dollar and gold for the surging oil and gasoline price.

Crude oil spiked to nine-month high primarily on investors fear of potential conflict over the escalating tensions between the US, Europe, Israel, and Iran.  Right now, it seems Iran could be the one blinks first (war or peace).

With major trade partners battered by recession, the latest trade data seem to give credence to a China hard-landing crash scenario by some forecasters.

Find out what the $3.6-trillion Blackrock sees in 2012

The $10 trillion global black market is now the world’s second largest and fastest growing economy.

Since Chinese local governments, unlike the U.S. municipality, do not have the option of filing for bankruptcy, Beijing most likely would need to do a great bailout of local authorities either in installments or at one fell swoop

In addition to the current Euro crisis, Japan, the world's third largest economy, could have its own debt crisis bigger than the Euro Zone as early as 2012.   

Goldman's Jim O'Neill said in a recent interview that the world's future prosperity depends on China's growth. If he's is right, then don't count on that much world prosperity, at least in 2012. 

Welcome to Washington politics, and this is one reason the nation is practically broke. 

The possibility of a Euro breakup is looming larger than ever.   Forecast by ING sees an immediate fall in individual currencies in 2012, and GDP output falls ranging from 7% in Germany to 13% in Greece.

Only time will tell if ECRI or Wall Street has the brighter crystal ball.

In addition to decades of overspending beyond means, there are also some less discussed contributory factors leading to the current debt crisis in the Euro Zone, particularly when compared to the United States.

Somebody, somewhere has to put up the money and take the loss of the Euro Zone, and it does not look like EU would rise up to the occasion. 

The new dollar liquidity injection from 6 central banks essentially took the urgency out of a much needed decisive resolution.  More crises similar to the one in the Euro Zone popping up to the point of one Scary Grandioso--No more spare bailout capacity.