There's a slew of economic news today that bodes well, though some question marks still remain on the horizon.

Job growth in April was much higher than economists expected. We added 165,000 jobs. Unemployment is at 7.5% and has been on a pretty steady downward trend.

Meanwhile, the oil industry is going great guns. We're seeing higher wages in energy, trucking, and service sectors in our oil regions. In fact, we're swimming in oil, but it's all going to export. We're on the cusp of a full energy renaissance where we many generate more oil than any other nation on earth.

So in the midst of that, why did the Federal Reserve say they might have to pump even more money into the economy?

Because of Europe! A lot of countries are in full-fledged depression. The European Central Bank has signaled they may take interest rates negative. That effectively means they'll charge big banks to hold money to force them to want to lend to businesses and individuals again.

In the U.S., the stock market is at all-time record highs. Yet there are danger signals like the deflation we're seeing. Deflation makes people afraid to spend because why would you buy something today when it's going to be cheaper 6 months or a year from now?

So the Federal Reserve may try to create inflation to keep us out of a deflationary spiral. Which will ultimately only make us stronger.

China is a big question mark. Yet in midst of the world's troubles, we're still a safe harbor. That's why you've seen gold and silver dropping in price. Precious metals trade on fear and economic instability. Their decline in value is a good sign because it means we're not afraid. Not to mention the recovery underway in real estate.

But sometimes it seems like we're so used to being beaten down with bad news that we can't accept the good news!

Image of Clark Howard About the author: Clark Howard

Clark Howard is a consumer expert whose goal is to help you keep more of the money you make. His national radio show and website show you ways to save more, spend less and avoid getting ripped off. View More Articles

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