07.10.06
3rd Times a Charm?
Please pardon my hiatus… I am truly a non-consistent blogger, maybe with time. In anycase onto the show:
After reading the Washington Post article about Bush choosing a 3rd Treasury Secratary in a rather short period I am curious to see how things turn out. Funny enough, Paulson was chosen for his “Star Power”, something I find a bit odd for an econy-type job. Paulson I think will have a rather tough road ahead and hopefully Mr. Bernanke and him will be in close contact. While the economy seems to keep soldiering on at a respectable pace, so has inflation for about the last year.
Now, some will argue that excluding gas and energy prices that the changes have been moderate, but as a professor once told me its hard to exclude them when you have to personally pay them. Besides they have been leaking in the PPI for some time now it appears in hind sight. Of further note it will be interesting to see whether Paulson and Bernanke decide to continue with the weak dollar appraoch (no matter what the administration say to the contrary) or will they rally the greenback. The empirical evidence is in, and a weak dollar has done little to staunch the bleeding of the trade deficit. In that light why not have a strong dollar, so atleast I can take a nice European vacation next year.