Once a week we will include a summary of certain aspects of the past financial week. May was the worst May in 60 years for the stock market and its opening week for June did not set any records. Note the 10-year treasury bond interest rate of 3.17%. The weeks closing percentage was down from 3.37% which means that the money we borrow cost us less last week than the week before. Understand that we borrow nearly 48% of all the money we spend. Our debt management costs total 11% of GDP --- it was less than 6% of GDP under Bush. If that percentage gets to 14%, the interest we will have to offer in order to sell our treasury bonds will rise from the current rate of 3.17% to somewhere near 8% --- a disaster. We must not allow that to happen. Currently, we are on track to reach the 14% barrier by 2015. The 2012 elections are critical in view of the current debt crisis and the 2015 "deadline."
| Canadian 10-Year Bond | 3.29 | -0.10 |
| U.S. 10-Year Treasury | 3.17 | -0.20 |
| U.S. GDP* | 05/27 | 3.0% |
| U.S. Unemployment | 06/04 | 9.7% |
| Canadian Unemployment | 06/04 | 8.1% |
| Brazilian Unemployment | 05/27 | 7.3% |
Compare unemployment benefit rates with Canada and Brazil. Understand that the census was run two months ago. The total job count for the month of May was 431,000 of which 411,000 were census jobs. Obama held up the reporting of these jobs until May in order to give the impression of sustained and increasing job growth. They could have been reported in April. The stock market did not buy the deception and dropped more than 330 points for the day.
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