View all posts filed under 5 January 2006

The most difficult prediction for the year 2006 is the direction and trajectory of the US economy. In 2005 the US economy defied all the known tenets of economic theory: In the face of record high trade deficits, monstrous budget deficits, a failed war and major political scandals involving presidential aides, the dollar strengthened against the Euro and the Yen, the economy grew at 3.4% and all the major investment houses had record profits.