Wednesday, October 22, 2008

Project for a New Asian Century.

With the stock markets so volatile and generally heading in the direction of PLUMMET, who has time to keep track of other economic indicators?

Why, I do, hypothetical question asker! I have plenty of time. I'm a little strapped for cash, but time, I gots it by the bucketful.

The economic news you might not have heard is this. The dollar is going great guns. The dollar shrunk for most of the Bush administration like a tire with a slow leak, but that turned into a fast leak earlier this year and then, STOP!

Hammer time!

After mid-March, the dollar started showing strength against all major currencies and then BOOM!

The massive crisis that was first announced mid-September has been nothing but good news (almost) for the greenback. The dollar is pounding the pound, turning the Euro into eurotrash, and whipping the Canadian "dollar" and the Aussie "dollar" the way rank impostors should be whipped!

U.S.A!!! U.S.A!!!

And now comes the parenthetical (almost).

Those were the preliminary rounds, and now we are playing for the gold medal. The Chinese yuan is holding almost exactly level with the dollar at about 6.83 yuan to a dollar.

This means we are tied for the silver and bronze, with the favorite for the gold medal being... the Japanese!

The Japanese currency is whipping the dollar the way the Japanese all-star team baseball team whips the U.S. national team. Right now, it takes only 99 yen to buy a dollar, and the yen keeps surging while nearly all other currencies are in full flight retreat when compared to the dollar.

Way back in 1933, Adolph Hitler and his pals had plans for a thousand year reich. It lasted 12 years.

Back in the 1990's, Dick Cheney and his pals drew up a Project for the New American Century, starting with the premise that we were the world's only superpower and nobody anywhere could fuck with us. This New American Century appears to have lasted about seven years.

The moral of this story, boys and girls? It's the same moral I've been pushing all month, except in a new situation.

Don't celebrate early.

EDIT: Did I say 99 yen to a dollar? That's so four hours ago. Now it's 97 yen to a dollar.


dguzman said...

Brilliant, especially the part about our "new American Century" lasting only about 7 years. I've had crappy cars that lasted longer than that.

One thing I don't get though, Matty, is why the dollar is up. Can you 'splain that a little? I don't understand how we can be trillions in debt, with the financial goatfuck, yet still have a dollar that's worth diddly. Shouldn't it be almost worthless? Or is it only so high because China doesn't want to get paid back their trillions in figurative pennies? I so confused!

Matty Boy said...

In the immortal words of Pete Townsend, "I can't explain." At least not very well.

In general, the dollar goes up when the price of crude oil goes down and vice versa. It's like the line of regression I brought up in today's earlier post, except with negative correlation.

But other than that, I agree with you, dg. Countries that have sensible banking policies, like let's say Canada, should be kicking our keesters right now, but that's not how the market is playing it.

Dr. Monkey Von Monkerstein said...

I say we let Indira Varma lead us into sa new south Asian century.

namastenancy said...

The minute somebody mentioned Indira Varma, my brains turned to mush. Who cares that we are in the economic mess of the century when we can contemplate her beauty? I've decided to ignore reality and focus on trivia.

Matty Boy said...

Dr. Monkey: She is actually a European, and her mom is Swedish. But if she's leading, I'm following, I think we've already established that.

Namastenancy: Varma. Brain. Mush. Ditto.