Not Scared yet? Start freakin now: "Some U.S. embassies worldwide are being advised to purchase massive amounts of local currencies; enough to last them a year. Some embassies are being sent enormous amounts of U.S. cash to purchase currencies from those governments, quietly. But not pound sterling. Inside the State Dept., there is a sense of sadness and foreboding that 'something' is about to happen...within 180 days, but could be 120-150 days." Read the rest here.
BeefCake for Nell: Yesterday 3 pics of scantily clad women were seen on L.R. I try to be egalitarian thru and thru...so here are 5 shirtless men - plus Rafa smiling. He's not playing at Wimbledon and well... it ain't the same.
Have a great weekend! Enjoy yourself. It's later than you think.
Conjured money is one of my "go to" snarks. I claim nothing beyond my gut and some real confusion when it comes to economics. Still, from my far window the economic policies of the Obama/Bush team (those who created the problem are still in charge.) appear dangerous to say the least. Does Obama have a plan b? is a legitimate question.
A close friend recently spent the day with a major economist - I am not at liberty to disclose this person's identity - but she revealed that he thinks Obama is doing some the the right things though "It is not enough." and he went on the say that the real problem is China. The Chinese own most of our debt - they have financed us for the last decade. The relationship has been beneficial to them. There will come a time - some say soon - when they will balk at being our credit card. What then? "they are sacrificing so we can indulge"
My perception that Obama's prime directive is to manage America's wane with a minimum of disruption was strengthened this week by his actions and statements in Europe. He is an errand boy, sent by grocery clerks...The errand he was on in Europe was to let the world know that we will behave. The "grocery clerks" are hail from Goldman Sacks...
Going along to get along is how WAPO put it. What's striking about Obama's diplomacy, however, has been his willingness to embrace the priorities of European governments, Russia and China while playing down - or setting aside altogether - principal American concerns. Is the new president shrewd and pragmatic about using his power at home and abroad - or too passive, even weak?
The era of lowers expectations has arrived. How quickly the bar is lowered is the only pertinent question now.
I want to avoid conspiracy theories. Really, I do. It's no fun wondering about larger patterns most of the time. Otherwise smart and kind people get huffy, dismissive, and condescending when anyone like me even says "conspiracy" in passing. My personal "magic bullet" in these cases is to remember that I have no commitment to the outcome on any given theory. I am just curious.
Therefore I ask: Are people in the highest echelons of this society trying to destroy the economy? Is the national debt so far gone now that the creation of hyperinflation is the only way out?
It looks more and more like the stimulus is an inferno accelerator. TARP 1, TARP 2, stimulus bill and now...whatever comes next...housing bailout? Seizing banks? All would seem to add up to a forced dumping of dollars by foreign governments. The "full faith and credit of the U.S. Government" is becoming painful even to think, much less print.
We are bankrupt. I don't see another way to put it. The credit card is maxed.
I watched the L.A. riots from my window in a sketchy part of Hollywood. It stopped being a "race" riot after a day. For 2 more days it was a purely economic riot. The have nots seized the moment - looting and taking what was otherwise impossible to have.
The membrane between order and chaos is less than razor thin.
So far the economic jolts have been disparate and, for many, still distant. This will change.
The illusion of a sound economy - or even an economy that makes sense - is being stripped away. The Fed "saved" Bear Stearns over the weekend and will drop the base interest rate that it now dumps money into the system by 1%. I don't know much about economics - but I know this - the problem WAS cheap money. The problem IS a massive amount of bundled bad debt that banks are holding. Debt even they can't figure out. Money being a little cheaper is not going to wipe those bad debts out. It may make the markets rise a bit but does nothing to address the problem. In a frenzy of psychotic borrowing over the past five years everyone from the busboy who was bought a house in the burbs up to largest banks in the country is holding the hot potato. The passing has stopped. What even cheaper money means now is not houses for those with bad credit - but inflation for all of us. The Fed has decided that in the fight between the dollar and the perception of an economy that works - the dollar loses. The game is not pass the buck - it's kill the buck. On Saturday I wrote that one or two large banks could fail soon. The Fed could keep printing cash to stave off bank collapse. But with every worthless dollar it prints every dollar in your pocket is rendered more and more meaningless.
Another "perception catching up with reality" note: Obama's overnight poll numbers sank by a record amount according to Rassmusen. On Friday the head to head Clinton/Obama number was 54% Obama 42% Clinton. By Monday is was Obama 46% Clinton 45%. This is a remarkalbe slide even in this crazy year. Rev. Wright's sermon on Christmas, finally widely seen, was clearly a swift punch in the gut to many. Clinton now has the opportunity to drive a stake in the heart of Obamamania. Will she?
