gdp

Let's take the politics out of the debate over public sector unions and their benefits, and look strictly at the figures. When you strip away the rhetoric, you can chart two macroeconomic trends and two patterns of fiscally foolish assumptions that have put both states and unions into this mess.

Goldman Sachs drew some undeserved ire when it recently pointed to proposed cuts in federal spending as a key near-term risk. While the proposed cuts are modest, they could still undermine the rebound at a critical time.

Events in the Mideast have, once again, revealed the U.S. economy's vulnerability to an oil shock. Now more than ever, the nation must reduce its consumption of oil, especially from abroad, and become energy self-sufficient. And the way to do it is with our abundant domestic sources of natural gas.

Despite all the headwinds blowing against it -- and they're fierce -- the U.S. dollar has been holding its own against the world's major currencies. And if the U.S. recovery remains on track, the greenback has good odds of actually strengthening in 2011.

It's no surprise that consumer prices are rising -- the prices of commodities from corn to cotton to copper are near record levels, thanks to shrinking supplies and rising demand worldwide. The question is whether the Fed will raise rates to combat this price inflation -- and whether it should.

The benchmark Standard & Poor's 500 Index only has to go up a tick or two before it doubles from its March 2009 trough. The index fell to under 677 on March 9 that year, and closed just short of 1,325 Tuesday.

Wicked winter weather played havoc with the government's employment situation resulting in an inconclusive jobs report on Friday. Still, stocks ended the week higher. But how much longer can stocks continue to gain?

Many people blame America's high unemployment rate on a mismatch between workers' skills and the fields with open jobs. But jobs are scarce across all sectors. That means effective policies are needed to stimulate demand and rebuild economic output.

In its latest report, the IMF applauds national policymakers for stabilizing credit markets and putting the global economy on a recovery track. However, thorny problems remain -- including how to prevent overheating in emerging markets, and how to cut the U.S. deficit while lowering its unemployment rate.

With protesters swarming the streets of Egypt, its stock market has taken a hit. But discount the doomsday scenarios. The sell-off could provide a good entry point for investors with the stomach to endure until things turn around, which seems more likely than most now expect.