More Doom and Gloom -- averted
News of the continuing credit crunch is again hitting front pages. For that reason, the hazy idea of writing another dreary post on my dim understanding of the problem arose in my mind.
I was going to take the position that an open feedback loop between currency-manipulating governments (mostly Asian) and the spineless US Federal Reserve has flooded the world with cash. I was going to display a graph of the US money supply to visually make the case, noting that the Fed had discontinued reporting M3 last year because it made inevitable disaster seem too obvious. Then I was going to argue that since this humongous paper wealth has to be held somewhere, it has surged into the stock markets, the real estate markets, the commodities markets, and the credit markets, creating bubbles in each and causing untold financial destruction. I was going to conclude that the final bubble is yet to burst, and that is the US dollar itself. I was going to put up some graphs generated by this cool US dollar valuation tool at the St Louis Fed to show how it was already happening, and then warn that since the entire world's economy is built on the foundation of the greenback, this is going to be real bad. In the post, I would probably have sprinkled a few links to old posts of mine smugly noting that I had anticipated what was happening a few years ago.
But I'm not going to write that post. I have leaves to rake, a snowblower to try to repair, laundry to do, bills to pay, dishes to wash, and a workshop to clean out. I really shouldn't spend one of the two days a week I have free from my children to write long, dull posts that no one will read. It would be a complete waste of time. And I never waste time. It's just not my way.
If you really do need to read some gloomy economic musings, check out Dollar Daze. I discovered it this morning as I was possessed by a troublesome hazy idea, and I can't say I've ever seen a more interesting economics blog. The archives have terrific primers on the history and the forces involved in the current economic mess.