It's a wacky world we live in. Full of surprises. Everyday is an adventure or a misadventure depending on your perspective. I prefer to see the "adventure" in the winding road although I have to admit there seems to be a lot more opportunity for mischief these days. For instance, the big news today:
China calls for new reserve currency
By Jamil Anderlini in Beijing
Published: March 23 2009 12:16 | Last updated: March 24 2009 00:06
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.
Analysts said the proposal was an indication of Beijing’s fears that actions being taken to save the domestic US economy would have a negative impact on China.
“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.
Although I sometimes think he's entirely too hysterical, I like Glenn Beck. This morning he was saying that if all the world's currencies depeg from the dollar, the value of the dollar will go straight to one cent.
That's Weimar Republic/Argentina/Zimbabwe territory and we do not want to go there, but how we prevent it? It seems that more people, Democrat and Republican, liberal and conservative, want to get off the Obama gravy train. These trillion plus dollar deficits are scaring people of all political persuasions. The problem is, no one knows what is going on anymore. It has become nearly impossible to do any business forecasting. Strategic planning requires the development of multiple scenarios for a variety of anticipated market conditions. Here it is nearly the end of March and Secretary Geithner has just this week proposed an outline for a program to relieve the banks of their "toxic assets." How many hundreds of billions of dollars have we spent so far on bank bailouts and why are we just now getting around to addressing the core problem? Could it be that the crisis opportunity was hijacked by Obama, Pelosi, Reid, et al? It's a rhetorical question. We all know the answer. Unfortunately, we don't know the consequences. So, for the sake of sanity, my advice is to treat everyday as an adventure, a real life quest complete with challenges, defeats and victories. Don't worry, if life kicks your butt today, there's always tomorrow.