Markets were cheered Wednesday when the International Monetary Fund (IMF) projected global growth of 2.5% for 2010, a slight increase from its earlier forecast of 1.9% growth. That’s good news for investors – but consumers in the United States and investors focused on it may not see much benefit.

If you want a real look at what’s headed this way, ask Hideko Toyotomi.

The risk of sovereign government default is rising, says Eric Roseman. Several EU outliers have already had their credit rating downgraded. And emerging markets look even more vulnerable, with many currencies under pressure. Eric says investors should steer clear of the high-yielding emerging market debt for the time being.

Given the implicit government guarantees, Eric Roseman says it is likely that investors will soon start to switch from low-yielding Treasury bonds to high-grade corporate debt. The Fed’s balance sheet is now polluted by the toxic debt it has taken on from banks. And demand for Treasuries will not keep pace with the deluge of supply in the coming year. Eric says this could make investment grade corporate debt the new safe haven in bonds in 2009.

In the currency market, the dollar rebounded powerfully against the euro. Late Tuesday, the euro was trading at $1.2507 vs. $1.275 on Monday. With no new economic data on offer, and the bond markets closed in observance of Veterans’ Day, things were subdued on the currency front.

Freedom! It’s taken us almost half the year, but we’re finally free! Free from the shackles of state oppression! No, I haven’t turned into a student communist.

“And one of the sensitive Mogambo Economic Tremor Detectors (METD) shows that the apparent slowdown in Total Fed Credit for the past few months has now been revealed as a mirage, and Federal Reserve Credit has now ballooned another $6.1 billion…”