/* Google Analytics Code asynchronous */

Tuesday, October 30, 2007

Real Effective Exchange Rate

One day, you wake up and find that you aren't 50% of the world economy; and, when you go into recession, the rest of the world doesn't follow.

Then, looking at your high debt loads, xenophobic immigration attitudes, war-mongering military spending, yawning structural trade gap, tax cutting in the face of adverse demographic changes that promise to stress the fiscal balance, you gulp and say, "We're so f----d", as your currency falls off the cliff and import goods inflation ... accelerates.

There is probably a 50% chance that the next President will start with a sluggish economy, if not worse.


Free Image Hosting at allyoucanupload.com