Strictly Monetary VI: Dollar Downward Spiral

In January of 2010 I pointed to the decline of the American dollar as being permanent. I spat at the idea that it was simply a slump. When the stock of companies like Apple and Google were at lows, I advised people that while they were good companies, there was no way I was going to hold anything in American dollars. This past week, Standard & Poors rating agency issued American bonds a negative warning, citing that it had serious concerns as to whether or not the American government will get it’s fiscal situation in order, confirming something we’ve known for years. So, what took so long?

Strictly Monetary Part III: The Game of International Reserves

Parts one and two covered the essentials about monetary systems and how we control them. But with exponential increases in the speed and amount of international trade, suddenly there is very little separating monetary policy from political games.

Strictly Monetary Part II: The Mechanics of Money

The global system of money is going through some drastic changes. This piece explains the tools our governments have to control the money supply and the price of money. After this, we’ll be ready to talk intelligently about some of the heavier global issues.