What began last year as a tiny paper cut in Thailand has tuned into massive systemic gangrene. The world economy is in recession. Markets are dropping. Hedge funds and banks are registering almost inconceivably large losses. Not since the 1930 Depression has the international economy been so battered and demoralized.
Japan is a mess.
But previous attempts to kick start the economy have been expensive fiascos. The rest of Asia is in worse shape. A melt-down in Brazil would be a calamity for US business and banks, whose exports and loan exposure to Latin America exceed those to Asia. Corporate earnings are falling. Frightened investors everywhere are dumping stocks and pouring their money into the safety of US Treasury paper - which has replaced gold as the premier medium of value.