Tuesday, September 18, 2007
These are interesting Times - we may be at the beginning of the most interesting time in the last 80 years - A Miracle or A Disaster?
This Afternoon the Federal Reserve Board has a choice in making an interest rate adjustment. This Decision will have a major effect on the Economy, the lives of most citizens of United States - and our position in the economic world.
Take the politics out of Economic Advisers - looking at taking the bitter pill now to be healthier tomorrow - The Fed should be raising rates. That is out of the Question. (It's what Paul Volker would have done - he was the chairman before Greenspan)
It's always interesting when we are at critical points - the people who make the hardest decisions are booed first and applauded later. Bernanke raising rates, will be applauded first and sent a message later..."What Happened?" and the "spin" will begin.
If the Federal Reserve Board neither raiser or lowers - they will be booed by Wall Street, and at least given recognition of making a good decision - it's a put-off, but still good. We are already in an Inflationary Economy - the dollar has been discounted against foreign currency from 10 to 30% over the last few years.
This is not a time to make any major economic decisions that require RISK - Safety but not damage is a proactive move at this time.