ation between the Fed, the government and the private sector, but no formal coordination mechanism exists to accomplish this.
Instead, the American economy depends on a combination of free market forces and government intervention to keep it on track, and these measure have worked well to this point. The government, even with the cutbacks required to balance the budget, will remain the largest consumer of private industrial goods and services, and private industry will remain dependent on the government not only as a consumer, but also to provide a reasonable regulatory environment in which private businesses will operate. By modifying taxation strategies, including the capital gains tax, the government is able to modify the way in which businesses operate, which can have a beneficial effect on the economy as a whole.
In considering where the American economy is headed over the next 12 months, it is important to remember that the economy is part of the American business environment as a whole. Because the Fed's curren
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