A hectic week on the economic calendar is highlighted by the initial look at second quarter gross domestic product (GDP). Remember, a recession is defined as two consecutive quarters of negative growth, so doomsayers have targeted this week’s release as confirmation of their pessimism.

With all the worries about the US financial system, the home mortgage market, and the rescues that might be necessary to save both, the federal budget deficit hasn’t received a lot of press lately.

The deficit is going to hit the $400-billion level in fiscal 2008. But expect it to rise to the $1-trillion level as early as fiscal 2009, says Martin Hutchinson in Money Morning.

How can investors best position themselves? Two ways. Buy non-dollar denominated foreign bonds. Or buy a fund that shorts Treasury bond futures…

For all their talk about change, the ultimate irony in today’s markets is that Washington is so afflicted with legislative gridlock that the “Beltway Boys” couldn’t “change” the channel on their flat-screen televisions.

After hitting a seven-week low yesterday, crude oil prices began to rise today.

Crude oil for September delivery rose $1.14 to $125.58 a barrel at the 2:30 p.m. close of floor trading on the Nymex.

Much of the recent drop in oil prices is due to the rally in financials, says Byron King. But the black goo is still double the price it was two years ago. Worse still, the US is now coping with chronic inflation. Precious metals are the best way to your savings and purchasing power…

The Bureau of Labor Statistics (BLS) has reported that the Producer Price Index (PPI) for finished goods increased 1.8 percent in June. But these are “seasonally adjusted” figures, says The Mogambo Guru. The un-adjusted figures – the raw data – tells a different story. They reveal prices jumped 9.2 percent for the same period…

It’s difficult these days to avoid comparisons between now and the 1970s. Then and now we have the specter of stagflation, an unpopular president, fallout from an unpopular war and a general disgust with government and politics.

But Dave Gonigam points says US voter turnout is actually increasing as the economy worsens.

For better or worse, it looks like more people will seek solutions to their economic woes at the ballot box come November than they ever did during the disco decade…

This is a strong recommendation from Commodity Trend Alert editor Eric Roseman.

Gold spot prices are still roughly 55 percent below their inflation-adjusted January 1980 high. And Eric reckons gold prices are heading much higher before this bull lays to rest.

That’s because this marks the first time in history that every facet supporting the bull market in gold is riding on steroids…

The US economy is on the skids, says Bill Bonner. Wall Street banks made their money by peddling debt to people who already had too much. And that couldn’t go one forever.

The global financial system is falling apart, and the world economy is slowing down. American consumerism is also slowing down – and no one knows what to make of that.

What would happen if Ben Bernanke actually gave it to Americans straight? At the moment, says Bill, the truth is the last thing anyone wants to hear – but they’ll have to face up to it sometime.

In normal times the second-largest U.S. bank failure in history would be the lead story in the mainstream media.

But we’re not living in normal times, says Dan Denning in The Daily Reckoning Australia. What we’re experiencing is a financial quagmire caused by the loud popping of an unprecedented credit bubble.

The collapse of IndyMac (IMB) has been overshadowed by the threat of insolvency at Fannie Mae (FNM) and Freddie Mac (FRE). The rescue plan for the twin mortgage giants is nothing more than backdoor nationalization, says Dan. Expect runaway inflation as a result of the government’s meddling…

What’s responsible for soaring inflation? Government meddling, says The Mogambo Guru.

World Bank President Robert Zoellick thinks the solution is to spend more to get out of trouble – by creating more money and credit.

Anyone with any sense should have bet against the Fed and put as much money as they can in gold, silver and oil.