Kelso, to a recent post in which I wrote regarding male sartorial splendor, made a comment supporting not only the necessity of having a passport, but also an off shore account. Now I do have both and won’t tell you what country mine s located in, but I will say Seychelles (in picture) is a great place to have one being a few hours flight from Durban, South Africa (Yawl need to go there its beautiful).Now Jones, your folk here aint the richest man in the world, in fact I am one of the poorest. With that said, over the past two months i done lost a lot of loot. I kind of hoard loot and try to stay away from spending it if I do not have to, especially if I aint got it.
The current credit crunch is hitting everybody nowadays and I am not just talking about the financial institutions. I mean the common man, the banks, Wall Street, Japan, and even Europe. I know people are doing all they can to ameliorate these problems, but suffice it to say, it will be hard to fix when the average person doesn’t have, and has a desire to spend, even when the do not have the money on hand. I feel I have the right to complain about the government practicing deficit spending, but those that do such themselves do not.
What I anticipate next is that Banks and Brokerage houses (one in the same since Clinton abrogated Glass-Stegall), which have already been hit hard by the sub prime lending practice and home mortgage losses, are not going to being seeing the good times any time soon. Since August of last year, the U.S. government has given financial institutions nearly a trillion dollars and things have yet to improve. Now the Federal Reserve Bank is getting into the act and is talking bout allowing banks/brokerage houses to exchange mortgage-backed securities (MBSs) for about 200 billion in Treasury bonds. Talking about shooting dice, I mean, the have never accepted MBSs as collateral before – not to my knowledge. This will make the FR a holder of long-term credit risk. I figure the FR doesn’t need t do this for it is the financial and lending institutions that need to make corrections on their practices and get their shit tight.
We already see our trade deficit increasing. Especially as it relates to exports as a function of being offset by higher oil prices. It increased almost $60 billion last month alone, and the increase specifically with China seems to grow more and more each day.
So in summary, it is the value of the dollar that is essential to a strong economy in the US. I do not like losing money, not even in the washing machine, and over the last 60 days I have lost $11,071.27. My problem is if I can see this, not as an economists, why can’t our government? vote
