Sunday, October 31, 2010
I need more weekends like this
Thursday, October 28, 2010
Brushes with Stars
Wednesday, October 27, 2010
More of the same
Tuesday, October 26, 2010
Bears putting people in the Hall of Fame!
Monday, October 25, 2010
Starbucks is good for more than just coffee.
Sunday, October 24, 2010
Hollywood Story??
Thursday, October 21, 2010
The week is flying by
Wednesday, October 20, 2010
The light at the end of the tunnel
Here's what the new street lights will look like. Not bad.
Tuesday, October 19, 2010
Just another day
Monday, October 18, 2010
Early mornings.....ugh.
Sunday, October 17, 2010
Piss Poor Bears
Friday, October 15, 2010
A day of golf
Thursday, October 14, 2010
What the heck?
Wednesday, October 13, 2010
Much suburban driving
Tuesday, October 12, 2010
Some Chili
Monday, October 11, 2010
Those damn Chinese!
Economists would expect that China's huge trade surpluses with the U.S. must sooner or later cancel themselves out. It's basic supply and demand.
1) China sells us more than it buys.
2) Therefore China accumulates dollars.
3) Therefore China spends the dollars.
4) Therefore the dollar declines relative to Chinese currency.
5) Therefore Chinese goods become more expensive.
6) Therefore Americans buy less from China and sell more.
7) Therefore the trade surplus ends. It's all beautifully self-regulating.
The trouble with the theory is that in China's case, step 3) does not happen.
To keep China's population working -- and to stop China's population from protesting -- the Chinese government must keep the exports moving. To keep the exports moving, China must keep the currency cheap. To keep the currency cheap, China manipulates its banking system so the accumulated surplus dollars never get spent.
Instead, the Chinese lent the dollars back to us. And because the Chinese had so many dollars, they lent the dollars very, very cheaply.
You got a fabulous deal on your mortgage because China's workers were prevented from spending the money they had earned.
This process accelerated through the 2000s, but it went into hyperdrive in 2005, when China's trade surplus abruptly spiked. Bigger surplus, more dollars, more lending. 2005 was the year the subprime mortgage boom began.
China's lending spree translated into an American debt binge. The debt of the U.S. nongovernmental sector surged after 2005 to levels last seen in -- uh oh -- 1929. And from the top of the roller coaster, it's a long, scary ride back to Earth.