Two elections in September, Japan and
Germany, could contribute to the longest business cycle boom in
global history.
Both elections portend economic reform
in the second and third largest economies. In Japan, Koizumi will be
able to free up $ trillions for private investment to boost the
economy if he wins big. In Germany, Merkel has promised to
significantly reduce the bondage banks and labor unions hold over
large corporations.
The U.S. is in the fifth year of an extraordinary period of business cycle expansion, easily the longest business cycle boom in our history. This boom will be extended if Japan and Germany come online to support global production with investment and GDP growth.