Bill Bonner, resident Cassandra at The Daily Reckoning, UK, analyzes the potential impacts of last week’s announcement from Dubai World on the world’s economies.

Baltimore – (TFN): The dollar is a dangerous entity these days. Never has there been such a globally important currency with as much political and financial manipulation.

The distortions from reality are mind-boggling, yet all of us depend on the status of the simple fiat for our financial wellbeing.

This is the age where politicians get their chance to run up huge debts.  “Politics is about what works,” said Hillary Clinton. At least, we think it was Hillary Clinton. Someone said it. Someone who is an imbecile.

Wall Street bankers create products like any other manufacturer seeking to sell goods or services for a profit. The products those bankers create are financial instruments and the services they sell include advisory services, which they provide to investors and use to sell their financial products. And being the shrewd businessmen and women they are, Wall Street’s bankers also make a habit of being both buyers and sellers of their own products. All the better to serve their customers who wish to trade their products.

Inflate or Die! The Federal Reserve has been on the US scenes since 1913. Not even Biblical plagues lasted 95 years. The ultimate effects aren’t much different. The Fed may or may not make it to a centennial commiseration. They are on the ropes.