Thursday, January 19, 2012

As Deflation Fears Rise, Boosting Exports Is Key to U.S. Recovery

Ways to avoid a painful Japan-like deflationary spiral are gripping investors and policymakers alike following Friday's disappointing jobs report. And what more the Fed can do with maneuvers such as quantitative easing remains a big question.

Last ditch measures to avoid turning Japanese get all the attention. But the truest gauge of the U.S. turning the corner might be if it is turning German instead. Banking more on sectors like manufacturing to tap into surging global demand, as Germany is already doing, rather then finding ways to artificially prop up demand is the way to recovery over the long haul. Read more.....

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