Most of the experts we interviewed for our July Markets Story, “Economic Recovery: Running on Empty” painted the economic picture as bleak, but predicted a possible recovery, albeit closer to 2010. In the meantime, interest rates are set to go up, inflation is on the rise, and the jobs outlook for the rest of the year is, according to the analysts we spoke to, either “awful” or “lousy”…take your pick. While making the overarching case to add gold and silver to your portfolio, Louis James, senior editor at Casey Research, uses another colorful anecdote to describe the economy: a zombie wearing lipstick.
James says that the U.S. economy has decayed from dead-man-walking status to that of a zombie in the grave. And he says that if the zombie rises, we won’t see real life - in other words, stimulus efforts by the United States and other governments won’t succeed until past mistakes are remedied. James says, “You can’t make bad medicine work better by prescribing more – but if you believe the patient just needs a stronger dose, you’ll keep trying. And there can only be one result: dead zombie. Before the zombie gives up the ghost, however, it may show signs of rosy life – but it will just be lipstick, not the healthy flow of living blood. Though an imitation of a thriving economy is all it will be, it could be a very impressive likeness.”
Tags: Economic outlook, economy
