Sometimes delays can improve planning and make inflation soften the effects. I usually say that the perfect tax system (perfect for the government) taxes so many things, that people don't notice how much they're really taxed. In a similar way, I believe that the perfect solution to the U.S. economy is complex.
I have noticed, that many non-U.S. banks may have long-term thinking involved in their public statements, but they always assume that the American government is doing the right things. Even though we're talking about well prepared statements, it is a sign that they believe in how things are done.
Currently, I have a bet with a guy in the banking business, and my bet is that the dollar will be below 4.8 and he says it will be above, at year's end. My reasoning is, that a high exchange rate will hurt U.S. business with wrong timing, and his reasoning is, that that's what the bank industry thinks, generally. Currently, the exchange rate is 5.1, so until now, the bankers were right. |
