Dennis Gartman spoke to CNBC this morning about the market’s views on the U.S. economy.
- 1:30 The U.S. economy is doing better than people think. Unfortunately, unemployment is going to remain high above 9%. The misconception that you can have merely a high school education and lead a middle class lifestyle is now something probably lost forever. More people are shopping and flying. The surprise of 2011 will that the U.S. performs as well as it does.
- 3:10 The era of the U.S. being the world economic motor is quickly waning. China, India, and Indonesia are gaining every day. Global growth, not dependent on the U.S., is what we’re getting.
- 4:20 Foreclosures are high and will stay high. Unemployment is high and will stay high. The consumer is becoming more and more liquid by the hour. They have seen the light, and is not going back to expanding their debt load. 5% and 6% GDP growth, the middle class worker living the high quality of life, this is doubtful. But the U.S. is coming out of its recession.
- 6:00 People have paid down debt, their mortgages, and credit cards. They’ve re-liquefied, as have corporations. This will drive the economy.
- 6:50 Australia is a big problem for the what market. Russia got crushed, the U.S. has problems, and now Australia’s crop has been devastated by crops. What prices are going to go a lot higher. Cocoa’s major worry is the Ivory Coast. Be bullish, if you have to.
- 8:30 The dollar is going to get weaker against commodity producing currencies. The dollar will be stronger against the euro, because of uncertainty.
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