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Low savings and rising short and long term borrowing costs are crimping the consumer. In America, the consumer is the economy, so we are moving towards times of greater risk. I read an interesting commentary regarding the affect of the housing boom on the economy. The argument was that flat income levels in the past 3-5 years and low borrowing costs induced consumers to extract home equity to finance lifestyles.

Ben Bernanke is in a precarious position. If he does not increase fed rates, he runs the risk of letting "inflation" run wild, despite the fact risks may be minimal. Foreign banks will shun American debt and sell off treasuries AND agency (mortgage backed securities), causing rising yields. He's in a Catch-22 situation. I'm afraid the only result will be a reduction in GNP and recession. This will quell inflation threats.

I've said it before, but I still believe commodities are rising under speculative pressure. Warren Buffett seems to agree with me per his comments this past weekend. Fortunately, all central banks (US and foreign) are increasing rates and reducing the money supply. This stabilizes currencies and reduces the risk of inflation, and in such a market, commodities will suffer.

Nevertheless, I wish I would have bought gold 3-5 years ago.

I agree with roninlb regarding job creation numbers and GNP, and I would also add bond yields to the mix.