As featured on p. 218 of "Bloggers on the Bus," under the name "a MyDD blogger."

Tuesday, September 25, 2007

Becoming The Third-World Country We Seek

Apparently the fact that our money is worthless globally is now a plus:

The U.S. dollar's slump on world currency markets boosts sales prospects for U.S. exporters but could mean higher prices for American consumers already smarting from rising food and energy costs.

A weak dollar increases the chances of higher inflation. That could put the Federal Reserve in a tough position of having to choose between tolerating rising inflation or raising interest rates to curb it — even if that makes the emerging economic slowdown worse.

Cheap exports for the world, rising inflation, an enormous inequality gap - hey, when did we become Mexico?

Well, this is what you get when you have essentially unregulated capitalism driven by greed, and a systematic destruction of the federal agencies tasked with oversight. Massive deficits didn't help either; we've borrowed so much that our money has become worthless. The dollar has gone down because the Fed has been so concerned with keeping a lid on this mortgage crisis that interest rates have been cut. But when the dollar goes down, commodity prices go up, which means inflation as those rising prices are passed to the consumer.

There are, in short, a lot of pitfalls in this economy right now, and the options are simply poor.

UPDATE: This is funny.

So right after the Bear Stearns funds blew up, I had a thought: This is what happens when you lend money to poor people.

Don't get me wrong: I have nothing personally against the poor. To my knowledge, I have nothing personally to do with the poor at all. It's not personal when a guy cuts your grass: that's business. He does what you say, you pay him. But you don't pay him in advance: That would be finance. And finance is one thing you should never engage in with the poor. (By poor, I mean anyone who the SEC wouldn't allow to invest in my hedge fund.)

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