Baseball91's Weblog

April 19, 2009

Mark to Market Accounting

Monetary policy. And frozen food.

Each American household seemed to have an ability to freeze time. With cameras and camcorders. And in a sense there has been a loss of spontaneity, a loss of freshness.

Each American household seemed to have an ability to freeze food. There was an affect of frozen food on people.

Freezed time. In a sense freezed time was what newspapers did each day. It was explaining what was in a piece of art.

Banks. In a sense banks helped freeze money and surplus income. Saved surplus, not “invested” in companies. But money set aside without any appreciation that one day a power outage would come. Frozen assets. But food in the freezer goes bad at times of power outages. And maybe too much had been stored there in the first place. Stored out of fear of the day of famine? Stored out of convenience? Stored as a way to manipulate destiny, but with a bit of humility discarded.

Control. Monetary policy. Mine, the government’s, was about control. Human control had replaced natural law with a loss of humility as a result?

This power outage was worldwide. The commercial real estate crisis was here. General Growth Properties, the Chicago-based company, which is owner of regional malls all over the country, amassed $27 billion in debt by buying malls and shopping centers.

I was fearful of the duration of this power outage. And how far reaching. And I was fearful of people without power trying to wrestle with life to resolve their problems.

The news from overseas was that almost all British banks had no liquidity. The people of Latvia, already without power, saw little chance of rescue soon.

The commercial real estate crisis was here which, along with deflation over the next 6 months, will determine the extent of spoilage. Those earnings reports from Citibank, Wells Fargo, this week had been missing a large amount of transparency.

And in China. The head of the China Banking Regulatory Commission issued a statement published on its website Thursday that banks need to guard against making risky loans and instead focus more on sustainable lending practices. Banks must be “on high alert for the accumulation of hidden risks as loans surge,” Liu Mingkang said. According to published reports today, in remarks made at the Boao Forum for Asia, Chinese Premier Wen Jiabao called for more surveillance of countries that issue major reserve currencies. That would be the United States. This statement comes on the heels of discussion at the G20 meeting of a new world currency. There is growing distrust of America and the politics involved in our currency. Last month in an essay published on the central bank’s web site, the head of the People’s Bank of China, Zhou Xiaochuan, proposed the creation a new international reserve currency. Seeking to expand currency swap agreements that are seen as a step toward eventually making the yuan more of a global reserve asset, Wen said, “We should give full play to bilateral currency swap agreements and will study expanding currency swaps in scale and to more countries.”

It was monetary policy and the currency reserve that allowed imports from around the world to be sold so cheaply in the United States. And I was fearful of people without power trying to wrestle with life to resolve their problems.

Monetary policy. And frozen food.

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1 Comment »

  1. Comment by baseball91 — October 28, 2016 @ 8:02 PM | Reply


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