The importance of any piece of economic information depends on your time horizon.  For traders, the issue is how it will move markets today.  For politicians, its relevance lies in how it could shape public opinion between now and the next election.  However, for long-term investors, what really matters is how it will impact the economic and financial environment for decades to come.  From this last viewpoint, there is no more important topic than the continued deterioration in the federal finances. 

Information released in the last few days provides an updated perspective on this issue.  However, before delving into this, let’s take a quick look at upcoming economic data.