The sports world is abuzz with Cristiano Ronaldo’s acquisition by Real Madrid for a record-setting 96 million Euro transfer fee, but I think the real important story of the day is the capture of two Japanese citizens in Italy who were bound for Switzerland with $134 billion in possibly-counterfeit US securities in $500M and $1B denominations.
Interesting how this story keeps getting blacked-out in the mainstream press, don’t you think? Methinks I detect Kim Jong-Il’s hand in this. North Korea has been turning out high-quality counterfeit US money for over a decade, and it was only a matter of time before they started working on the really valuable stuff. Still, it’s only speculation at this point. Still, is anyone in the market for shady $500M US bonds?..
Here’s something that’s relatively easy to miss in these hard economic times where importing things from the US had become a luxury once again — there has been a sharp but sustained drop in the value of the US dollar recently. It’s fairly dramatic, too — in the past 3 months the value of the Canadian dollar has gone from $.77 to$ .92 US. That’s almost a 20% rise in the space of a quarter.
There isn’t really anything currently going on in Canada to warrant this sort of price movement, and indeed much the same story is revealed when looking up the relative values of the Euro and the Pound; even the Japanese yen is appreciating despite the plethora of political and economic bad news coming from Tokyo.
Nope — this is not about other currencies appreciating. This is about the USD tanking, and a low dollar means that Americans will spend more for the imports on which their economy depends. This heralds the onset of inflation in the American market. If Americans think they’ve had it tough since October, they’re in for a rude awakening.