It's so weird, the quality of the economy seems to be strange. The Malls are full and busy, but they must be slow in some places. If the oil bubble bursts will the economy just be bad or will the burst bubble cause people to be able to reallocate resources and build their businesses again and start having disposable income? That's where people are feeling it, I think, the extras--and just about everything but food and shelter is an "extra". Maxed Out Mama says:
The UK is now in the stage at which credit card spending is going up as people try to maintain living standards in the face of declining real incomes. This is the last gasp for the UK, and will end in a pretty strong downturn, because UK household debt cannot keep increasing at these levels. Please see the link for a piece of excellent analysis by Alice Cook. Bottom line, this is an inflation signature.So, what's the answer? A friend is stocking up--on food, ammo, guns, generators, fuel, etc. Glenn Beck was recommending the same thing on his radio program which I thought interesting--not that anyone is getting their economic advice from him.
So what now? We have global correlations. I guess we all watch as oil rises every time stock markets drop on realistic expectations. It appears that oil speculation is the last refuge of idiots.
The entire world cannot support global growth based on nothing but spending increases in oil-exporting countries, so the game is over. The only question is whether we get a pretty strong global recession, or whether we get a global depression type event.