The economy is strong overall, but there are some troubling signs up ahead, including higher interest rates and inflation. The dollar is weakening rapidly vis-à-vis other currencies, so much so that the Chinese central bank has decided to begin using the Euro as a reserve currency. Apparently international bankers are not as confident in the US's financial system, particularly in light of our high budget deficits along with higher government outlays. From a microeconomic standpoint, personal savings are also way too low. Sure, some sectors like real estate remain hot, but there are problems that can affect the overall economy.
