TWO FROM BUZZFLASH

Busy night. Here's a couple of good articles courtesy of BuzzFlash.

American paralysis in the face of the declining dollar

From the American Prospect:

The longer an adjustment is delayed, the more serious will be the eventual crash. And if the dollar crashed, the Federal Reserve would be torn between raising interest rates to restore foreign confidence in the dollar (and creating a domestic recession) or lowering interest rates to stimulate a domestic recovery (and scaring off even more foreign lending on which we depend).

The alternative to this mess is a more assertive trade policy, so that other countries stop playing protectionist games at America’s expense. If we exported more and imported less, we would not be so dependent on foreign borrowing to finance the trade deficit. But that strategy is off the table, and in any case it would take time to work.

The precarious dollar is also weakened by the big federal budget deficits and the increasing role of hedge funds, which operate like a herd and exaggerate normal swings in currency markets. But Secretary Paulson wants even more tax cuts and more financial deregulation.

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Alps are warmest in 1,300 years

From the AP via Yahoo:

Europe's Alpine region is going through its warmest period in 1,300 years, the head of an extensive climate study said Tuesday.

"We are currently experiencing the warmest period in the Alpine region in 1,300 years," Reinhard Boehm, a climatologist at Austria's Central Institute for Meteorology and Geodynamics said.

And

The unseasonably warm weather this autumn has caused concern in Austria's ski resorts, where slopes are still largely covered in green grass instead of snow. Many, such as St. Anton am Arlberg, have had to postpone the start of their skiing season and some have tried attracting tourists with alternative programs, such as hiking.

Austrian ski resorts usually open at the end of November or early December.

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