What's Going On?
The image is from a 1998 Lucasarts videogame called 'Grim Fandango'. It illustrates perfectly where we are.
I barely need any cues to wander through this earth, down and round and abroad in the land as one of its dazed and confused. However, as P.G.Wodehouse would no doubt have said, something is definitely up....
(1) A Greek debt crisis is being spun by Anglo-American media into a euro currency crisis just as euro high-risk bonds find millions of dollars flooding their way. I need hardly point out that all that money is going in the wrong direction for the journalists. What's driving that current?
(2) President Obama has signed a law raising the US Debt Celiing to 14.3 trillion dollars before it becomes apparent that many of the States are bankrupt, even if armageddon has been officially postponed for 30 days by the LA City Council.
(3) The People's Republic of China continues with its plan, it is rumoured, of gradually raising and floating the renmimbi yuan--but also continues to withdraw from loans to the US and instead, positions itself as a shareholder in major companies or as an owner of gold.
(4) The ECB went secret squirrel in Australia, with 24 other central banks, one week ago.
What if a decision is cohering to bring about a gradual resolution to one of the central sources of world instability--the US dollar's overvaluation, and the lack of a real alternative at a time when the Americans are piling debt upon debt?
What if this starts just as stagflation sets in in Britain and America, with unemployment and inflation both set to rise, and when a second banking crisis caused in part by Greece, and in part by a mortgage financing gap, kicks in?
Time for a spot of Suez in Iran, anyone? A very dangerous hour approaches....
Ah well. May our mistakes be our own from here on in, now what is actually coming is becoming clearer. It's Mardi Gras, by the way. Let's have a fun song. Here's the Korean Elvis Cha, singing his way through 'are you lonesome tonight' on an TV set. He's a much better Elvis than me. A potato would be a better Elvis than me.
I am giving up wine for lent, again.