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USA Economy

In this sense, the logical thing is to wait to the next thing is a time of comprehensive regulation of the financial system. An era where the adjustment is counter-cyclical, this is that when everything goes well in the world, the adjustment adjust the belt for controlling the animal spirit of the insatiable markets by more and more profitability. Probably regulators may even lose the essence of financial regulation for fear to be seen guilty in a future crisis. The crisis has made in addition, aware that things are not going anything good in the American economy and that the problems afflicting persist more aggravated after the recovery started, which planting bases of the next crisis in the world economy since it would mean a severe blow to the dollar affecting international financial stability. And the main problem of USA today is its fiscal deficit.

How can an economy sustain deficits (fiscal and external), chronic for so long as U.S. has done? The answer can be summed up in one word: China. I can not take all the blame to the United States. As an old saying goes, the fault is not the pig but that gives eating. And that has given him eat for several years has been China. The resurgence from the ashes which will experience the dollar after its record lows against the euro in 2008, proved to be temporary. It is not that the euro will now prove to be a strong currency, but rather it seems that we are witnessing a competition by knowing which currency is the weakest of all. And in this competition can not miss the yen and the pound sterling. Is the dollar below or above its equilibrium value? As I wrote as soon as you can win betting on the Euro, making reference to the fundamental macroeconomic variables of the American economy, the immediate conclusion that arose is that the current weak dollar is probably more appreciated than it will be in the medium term.